Following its latest earnings guidance released to the market this morning, the Sirtex Medical Limited (ASX: SRX) share price has risen 13% to $17.67. This is a new 52-week high, with shares up 13% over the past 12 months:
Sirtex management this morning stated that first half earnings before interest, tax, depreciation, amortisation (EBITDA) is expected to be around $34 million for the 6 months to 31 December 2017. However, full year EBITDA is expected to be around $75 million to $85 million, a strong improvement from underlying EBITDA of $61.5 million last year.
Higher earnings are due to lower costs, with Sirtex recently scrapping its research & development division to focus more directly on sales. Dose sales however were flat, and are expected to pick up somewhat in the second half. With no R&D expenditure, Sirtex faces a challenge in growing in the future, especially given the recent failure of several of its clinic trials.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Sean O'Neill owns shares of Sirtex Medical Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Results: Is G8 Education Ltd a buy for its 4% dividend? – August 27, 2018 12:22pm
- Results: Why the Adacel Technologies Limited (ASX:ADA) share price is down 7% – August 26, 2018 9:54pm
- Results: Why the Nearmap Ltd (ASX:NEA) share price is up 4% today – August 22, 2018 5:15pm