We look at how shares in the private health insurer fared last time the company reported its full-year results.
The post How did the Medibank (ASX:MPL) share price respond last earnings season? appeared first on The Motley Fool Australia. –
With conditions improving in the sector, investors will be keen to see how the private health insurer performed this financial year.
Let’s take a look at how the Medibank share price responded last reporting season.
Here’s how the Medibank share price responded last year
The Medibank share price swung wildly after the company released its full-year results for FY20.
Investors were initially undecided on how to interpret them.
Shares in the private insurance behemoth slumped more than 2% in early trade.
Then, a wave of buying later in the day saw the Medibank share price finish more than 2% higher for the day.
For FY20, the private health insurer noted severe disruptions from the COVID-19 pandemic.
Highlights from Medibank’s FY20 financial report included;
Total revenue from ordinary activities of $6.785 billion, down 6% from prior corresponding period (pcp) FY19’s $7.219 billion.
Premium revenues of $6.546 billion, up 1.3% to pcp
3.2% increase in insurance claims on pcp
Net profit after tax (NPAT) of $315.6 million, a 31.3% on pcp
For the full year, Medibank also announced a final, fully franked dividend of 6.3 cents per share.
The outlook for Medibank
The new year has been much kinder to the Medibank share price.
Shares in the private insurer have soared more than 18% since the start of the year, currently nudging 52-week highs.
There have been several catalysts helping fuel the company’s share price.
The initial trigger can be traced back to February after Medibank announced an increased interest in MyHealth Medical Group.
According to Medibank’s management, the investment will help the company strengthen its focus on preventative health.
A strong half-year report also helped the Medibank share price.
For the 6 months ended 31 December 2020, the private health insurer recorded a 27.3% increase in net profits after tax of $226.4 million on pcp.
Medibank also cited an increase in premiums with a drop in net claims expenses for the half year.
In addition, the company also announced a 5.8 cent, fully franked dividend.
Investors will be keeping a keen eye on Medibank’s shares tomorrow as the company releases its full-year results for FY21.
Should you invest $1,000 in Medibank right now?
Before you consider Medibank, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Medibank wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
The Medibank (ASX:MPL) share price is up 18% so far in 2021. Here’s why
3 ASX 200 dividend shares lifting to 52-week highs
The Medibank (ASX:MPL) share price is now trading on a forecast 3.76% fully franked dividend yield
These 10 ASX 200 shares hit new 52-week highs this Monday
Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.