PME -3.2%: We saw it recently with JB Hi-Fi (JBH) and CAR Group (CAR), a stock priced for “perfection” needs to knock it out of the proverbial park when it reports, or profit-taking follows, especially at the pointy end of town in terms of valuations and how crowded the position has become. In early trade, the health imaging technology company’s shares were up 4% to an all-time high of $298.98 before the profit taking took control.
- Total revenue rose to $100.8m – up 32%, around 1% short of lofty expectations.
- Underlying profit before tax $69.9m – up 42.9% YoY.
- Underlying EBIT margin increased from 66% to 72%
- A fully franked interim dividend of 25c per share was declared, compared to 18c YoY.
The company remains debt-free, holding sufficient cash reserves to fund its anticipated growth as it seeks to expand its presence in North America, Germany, and Australia. No guidance was provided for FY 2025, but Dr Hupert spoke positively about its outlook, highlighting that its sales pipeline “remains strong”. The one aspect worth calling out is the delay between winning contracts and generating revenue , there is a lag some analysts underappreciated.
- A solid/good result from PME today, but its valuation remains the main challenge for the share price.
MM likes PME back around $250
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