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Monash IVF (ASX:MVF) joins the ranks of company guidance withdrawals

Health Care
ASX:MVF      MCAP $578.6M
20 March 2020 19:15 (AEST)

Fertility specialist Monash IVF (MVF) is joining the growing list of companies tossing away their earnings guidance as COVID-19 spreads.

The company said while the pandemic has not strictly impacted business operations yet, the uncertainty of market activity going into the fourth quarter of the year makes an accurate guidance tough to predict.

In its half-yearly report from February 21, Monash said it was on track to meet its predicted 2020 net profit after tax of between $18 million and $19 million.

The company’s profit for the first half of the financial year fell marginally above expectations, but Monash is not so sure things will go the same way in the second half.

As it stands, the Fertility Society of Australia has recommended those trying to conceive have no need for extra concern amid growing COVID-19 scares.

“At this point, there is no evidence to recommend contraception or cessation of attempts to conceive, either unassisted or assisted,” the Society said.

As such, Monash’s IVF and women’s imaging services are proceeding as per normal for the meantime.

Nevertheless, Monash has taken pre-emptive measures to ensure both the health and safety of patients and doctors and the protection of its business.

Monash said it will update the market with any news on business impacts from the coronavirus as appropriate.

Despite the “business as usual” tone in the company’s announcement, investors reacted negatively to today’s news. Shares in Monash fell 15.7 per cent to 51 cents each today — bring their total loss since the start of 2020 to 50.49 per cent.

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