PME surged over +7% on Wednesday, back towards its all-time high, following a sold FY24 result that beat across all metrics. Chief executive Sam Hupert said he remained confident in the company’s medical imaging software, assuring investors its stellar run is far from over as it eyes new revenue streams from cardiology and artificial intelligence. However, he understandably cautioned that it will be unable to deliver +30% annual profit growth forever.
- Net Income of $82.8mn, up 37% yoy and above consensus of $79.2mn.
- Underlying pretax profit of $112.3mn, up 34% yoy.
- Final dividend of 22c versus 17c yoy.
The result was driven by increased revenue from North America, up 34.4%, and Australia, up 5.9%, while Europe decreased by 6.7% due to one-off revenue from a sale to a German hospital in the previous corresponding period. If we were traders, we would never go short PME, although JP Morgan lowered its rating overnight to neutral with a PT of $130; we remain fans of the business but believe there is a very good chance of another pullback towards $120 – remember, it’s a volatile beast!
- We like PME but don’t plan to chase the stock above $140.
MM is neutral PME ~$140
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