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Pro Medicus (ASX:PME) share price tumbles 4% after AGM

falling healthcare asx share price represented by doctor grimacing at x-ray
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The Pro Medicus Limited (ASX: PME) share price is falling today after the company held its AGM. Shares in the ASX imaging provider are currently trading 4.53% lower, down to a price of $29.72.

The drop marks the 10th straight day of declines for Pro Medicus. It has lost 14% since its November highs. This is despite the renewal of a large contract with Zwanger-Pesiri on 19 November.

What was covered at the AGM?

Pro Medicus chairman Peter Kempen updated shareholders on the company’s current and future market positions. Welcoming strong results despite the impacts of COVID-19, he said many of the goals the company set itself in the strategic plan of August 2018 had now been achieved.

Pro Medicus highlighted strong performance during FY20 through numerous contract wins. These included Ohio State university, Nines and the largest deal of the year, NorthWestern Memorial HealthCare.

Management noted that Pro Medicus was “working on a significant number of new opportunities” and its pipeline continued to be strong. Furthermore, the group “remains in an excellent position to continue to capitalise on these opportunities as they present”.

About the Pro Medicus share price

The Pro Medicus share price is falling despite a successful year for the imaging provider. In what marks the 20th year since publicly listing, Pro Medicus achieved strong financial results.

Despite trading 3.89% lower today, the company has gained 20% this year. This comes as it reported NPAT growth of 21% up to a total of $23 million in its FY20 results. Pro Medicus increased its dividend to 12 cents a share. Cash on hand also grew, rising from $32 million to $43 million, while continuing to be cash flow positive.

What Now

In October, the board met with the global management team to discuss the next phase of its strategic direction. A follow up meeting will be held before the end of the calendar year to assess strategic goals and objectives.

Mr Kempen predicts:

Another strong year with the majority of growth occurring in the second half of the financial year. The budget for the current financial year has been determined recognising continuing strong growth, with examination volumes returning to more normal levels. I am pleased to advise that results to date are ahead of budget, notwithstanding the impact of the falling US dollar.

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Daniel Ewing owns shares of Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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 Scott Phillips.

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