Why the Sirtex Medical Limited share price just jumped 13% to a 52-week high

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:

source: Google Finance

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.

These 3 blue chips could be a much better bet than Sirtex in 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!