Healius (ASX:HLS) share price pushes higher on solid Q3 update

The Healius Ltd (ASX:HLS) share price is pushing higher on Wednesday after reporting solid growth across its businesses during Q3…

The Healius Ltd (ASX: HLS) share price is edging higher on Wednesday morning following the release of a trading update.

In early trade, the healthcare company's shares are up 0.5% to $4.10.

woman in lab coat conducting testing.

Image source: Getty Images

How is Healius performing in FY 2021?

According to the release, Healius delivered a strong trading performance in the third quarter of FY 2021. Though, it does acknowledge that it was cycling weaker comparative data late in the period.

In respect to its Pathology business, Healius reported that COVID testing continues, with the company recently reaching 3 million COVID tests in total. This includes over 800,000 tests undertaken in the third quarter, which was on par with its first half levels.

Management advised that this includes a growing amount of commercial COVID testing.

Positively, non-COVID Pathology revenue was solid during the third quarter. This led to 5% growth compared to the prior corresponding period. It was also higher than first half levels. A positive test mix has been supporting higher average fees.

The company's Imaging business performed positively during the third quarter. Healius reported an 8% increase in revenue compared to the prior corresponding period.

Management notes that it has experienced different recovery rates in different states, with Victoria showing a progressive recovery.

Finally, its Day Hospitals business was a particularly positive performer during the third quarter. It reported a 25% increase in revenue over the prior corresponding period. This was driven largely by its Montserrat hospital.

The company also advised that its Westside Private Hospital performed nearly 1,000 procedures in March, its best month to-date. It also successfully completed its first hip and knee replacements.

Another positive was that its Adora Fertility continued to trade profitably. Though, management revealed that it is exploring potential sale options for the IVF business. These options are in the preliminary stages and no decision has yet been made.

The Healius share price is now up 67% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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