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Pro Medicus (ASX:PME) shares dipped by as much as 4% today, despite the medical imaging IT provider dishing up its “biggest half-year results” when it came to key figures like revenue, net profit growth, and retained earnings.
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On top of that, the $28 billion Healthcare company heralded huge wins in U.S. contract pickups, renewals, and upgrades – an “unprecedented success.”
Between several deals, Pro Medicus has teed up as much as $365 million in new contracts over the next decade and re-upped $98 million in extensions with U.S. companies; a further $32 million came from an Aussie radiology provider.
“In the last two months alone, this resulted in contracts with a minimum value of $485 million including University of Kentucky and Bay Care, which were signed in January,” co-founder and CEO Sam Hupert said. “We continue to build the pipeline of opportunities across all market segments… and all client sizes.”
And yet, it wasn’t enough to keep PME in the green on Thursday. The Melbourne-based provider did climb as much as 3% soon after the earnings release but then handed it back (and then some) through to near arvo close.
By 3pm, Pro Medicus had retreated by $12.56 a share, to sell at $275.75. Ten minutes later, it had rebounded somewhat to sell at just 1.4% down.
With some minutes to close, there’s every chance the rollercoaster moves again.
One easy answer to why would simply be profit-taking; considering the 3% jump earlier today ticked the Melbourne imaging company straight into an all-time high some investors may just see it as a good time to bank earnings.
(Then, that ten-minute re-surge may be new faces joining the PME party.)
Others may be looking at growth prospects and questioning whether the company is doing enough to justify its $31B cap. (It’s one spot outside Australia’s top 20 companies.)
No matter what the answer is, one can only imagine the PME team is relatively unphased.
Mr Hupert’s comments suggest as much too: The Pro Medicus boss suggested these results “reinforce just how large an opportunity the U.S. is for us.”
“Roughly 60 cents of every dollar spent on healthcare globally is spent in the U.S.,” he continued. “It is a huge market so there is plenty of runway despite a slew of recent wins.”
For those who’ve been playing a while, it’s easy to recognise this may just be the Pro Medicus trend around results now; the company’s price shaved as much as 20% in the days after its first-half FY24 results. That was a road bump though, because the company then went on to double by the end of the calendar year.
Whether history repeats in 2025 is anyone’s guess. PME is $284.33 right now.
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