Diagnostics company SHL rallied +15.1% yesterday after beating market expectations, they delivered a profit that was 50% higher than before COVID – revenue over the last few years was elevated due to massive PCR testing, hopefully, a thing of the past.
SHL is another stock that received a broker downgrade after punching to fresh all-time highs i.e. its not a problem with the business just a case of the stock going too far too fast. Like many companies SHL have staff issues due to Omicron but the largest concerns revolve around antigen kits taking over from previous COVID testing, this maybe true...
COVID has clearly provided a strong tailwind for vaccine producers overseas while pathology operators locally have seen a huge boost in demand which has flowed through to strong profits, Healius (HLS) and Sonic (SHL) are examples here.
Companies reporting today on MM’s radar include:
Ampol (ALD) 1H21 Results: Expectations for 1H21 NPAT of 171m & Dividend of $0.433
Charter Hall Group (CHC) FY21 Results: Funds From Operations (FFO) per share of $0.58, NPAT $269m & DPS of $0.38. FY22 expectations are for strong profit growth (+24%) to $333m
Chorus (CNU) FY21 Results: Expectations for revenue of $947m, EBITDA of $645m, NPAT of $50.84m (down ~2% on FY20), EPS of $0.111, FY Dividend $0.25. Market currently pricing NPAT for FY22 of $49.25m, flat on FY21.
Pathology and diagnostic imaging business SHL has been a huge winner post COVID and although its bounced strongly after its recent 20% correction we remain bullish targeting fresh all-time highs.
Sonic Healthcare (SHL) is a pathology and diagnostics company within medical practitioners and hospitals. They also provide administration services, servicing clients in Australia, New Zealand and Europe.
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