The NIB share price is closing in on its all-time high of $8.20 achieved in July 2019. How will it fare after the company delivers its FY21 results tomorrow?
The post What happened to the NIB (ASX:NHF) share price last earnings season? appeared first on The Motley Fool Australia. –
The NIB Holdings Limited (ASX: NHF) share price edged higher on Friday ahead of its FY21 full-year results on Monday.
Indeed, investors will be watching this space when the company reports its numbers for the second half of the financial year.
At Friday’s market close, NIB shares ended the day up 1.14% to $7.98.
Let’s take a look to see how NIB performed for the first half of FY21 and how its share price reacted.
What did NIB report for the first half of FY21?
NIB delivered its half-year result for the 2021 financial year in late February, revealing mixed numbers across the board.
Here’s a summary of the financial details that NIB posted for its last earnings season.
Total group revenue of $1.3 billion, down 1.1% on the prior corresponding period
Group expense claim of $1 billion, up 0.9%
Group underlying operating profit (UOP) of $86.9 million, up 4.4%
Net profit after tax (NPAT) of $66.2 million, up 15.9%
Fully-franked interim dividend of 10 cents per share (in line with H1 FY20’s interim dividend of 10 cents per share)
Following the release, NIB shares advanced from $5.33 on 22 February to as high as $5.87 on the day. This represents an increase of around 10% for the private health insurer.
However, investors were quick to take profit off the table, sending the company’s shares lower in the aftermath.
What should investors look out for this earnings season?
According to Goldman Sachs, NIB is expected to report total FY21 revenue of $2,521 million. In comparison, the prior corresponding year brought in $2,438 million.
Group UOP is forecasted to come in at $217 million, compared to $150 million in FY20.
The NIB board is predicted to declare a final dividend of 14.5 cents per share. This represents a growth of 75% when matched against FY20 (14 cents per share).
Goldman Sachs noted improved earnings contribution from ancillary businesses and further corporate white-label partners driving market share gains. However, weighing down the result could be softer-than-expected travel insurance performance.
NIB share price snapshot
NIB shares have been on fire lately, rocketing 20% over the last month. When looking at a longer time frame, its shares accelerated by more than 60% since this time last year.
It’s worth noting that the NIB share price is closing in on its all-time high of $8.20 achieved in July 2019.
NIB has a market capitalisation of roughly $3.6 billion, with approximately 457.7 million shares on issue.
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Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. 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 recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.