The Nanosonics Ltd (ASX: NAN) share price is surging today on the back of the company's 2019 financial year results, which were released to the market this morning. NAN shares had closed yesterday at $4.91, but the share price opened at $5.90 this morning (up 20.2%) and have trended higher still, hitting a new 52-week high of $6.29 just after open.
This caps off an incredible year for Nanosonics. NAN shares started 2019 at $2.78, but on today's prices have banked a YTD gain of 121% so far.
Why are Nanosonics shares going nuts?
Put simply, the market liked what they saw in Nanosonics' results this morning. The company delivered a 39% increase in revenue, installed base growth of 18% and an astonishing 201% surge in operating profits before tax, which came in at $18.8 million. And just to cap it off, Nanosonics announced it is predicting similar growth levels for FY20 as well.
In terms of future growth, Nanosonics also relayed that the 'trophon2' (the second generation of its flagship ultrasound disinfection system) has been granted approval in the Japanese market. Nanosonics reported it has "received very positive customer feedback" after having launched in North America, Europe and Australia during the year and the company is expecting higher revenues stemming from customers who have already purchased the original trophon upgrading to trophon2.
There's no doubt this result has sent investors into a buying frenzy (its not often you see shares going up more than 25% before lunch).
Nanosonics now has a market capitalisation of $1.87 billion with revenues of $84.3 million, and on today's share price and earnings, NAN shares are sitting with a price-to-earnings ratio of almost 140.
