Pro Medicus’ FY21 earnings are imminent. While we wait, let’s take a look at how its shares reacted to its FY20 results
The post How did the Pro Medicus (ASX:PME) share price respond last earnings season? appeared first on The Motley Fool Australia. –
The Pro Medicus Limited (ASX: PME) share price has had a brilliant 12 months on the ASX, and all eyes will be on it tomorrow when the company drops its results for financial year 2021 (FY21).
Since this time last year, the Pro Medicus share price has gained a whopping 136%. For comparison, the S&P/ASX 200 Index (ASX: XJO) increased 24% in the same time frame. However, Pro Medicus shares have dipped by 0.12% in early trade today.
Market watchers will likely be particularly curious about Pro Medicus’ earnings since the company’s stock hit its highest closing price of all time just over a month ago.
So, as the market awaits the healthcare imaging company’s FY21 earnings, lets cast our minds back to its FY20 results and how the Pro Medicus share price reacted.
How did Pro Medicus perform in FY20?
The market wasn’t excited about Pro Medicus’ FY20 earnings, despite the company’s performance being relatively strong. Here’s a sample of Pro Medicus’ FY20 results:
$56.8 million of revenue from underlying operations, 23.9% more than the prior corresponding period
Underlying profit before tax increased 33.4% to $30.24 million, excluding a capital sale from the previous period
$23.1 million worth of full-year reported profits, a 20.7% increase
$43.4 million worth of cash in the bank and no debt
A 6-cent final dividend, bringing its total FY20 dividends to 12 cents per share
Pro Medicus’ growth was driven by increases in its transaction revenues in North America and Australia.
However, the company’s European revenue dropped, mainly because the company completed a $3 million one-off capital sale to the German government in FY19.
The Pro Medicus share price dipped on the back of its FY20 results. It ended the day 2.5% lower than where it started.
What’s driven the Pro Medicus share price since?
Pro Medicus has been performing brilliantly on the ASX since it dropped its FY20 earnings.
It has announced a seven-year contract and research agreement with NYU Langone Health, a $10 million deal with LMU Klinikum, a five-year contract with MedStar Health, and a seven-year contract with Intermountain Healthcare.
Additionally, Pro Medicus announced a new on-market share buyback in April. The buyback will see it pocketing 10% of its issued securities.
With so much productivity evidenced in the company’s market releases during FY21, investors may be on the edge of their seat waiting to see how the Pro Medicus share price responds to its imminent results.
At its current share price, Pro Medicus has a market capitalisation of around $5.92 billion. It has approximately 104 million shares outstanding.
Should you invest $1,000 in Pro Medicus right now?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.