ASX 200 rises again, Avita jumps, Shaver Shop sinks

The Avita share price was a top performer as the ASX 200 went up again.

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The S&P/ASX 200 Index (ASX: XJO) rose 0.1% to 7,386 points.

Here are some of the highlights from the ASX today:

AVITA Medical Inc (ASX: AVH)

The Avita share price went up over 12% in reaction to an update about its FY21 fourth quarter.

For the quarter ending 30 June 2021, to date it has seen total revenue of more than the FY21 fourth quarter guidance range of $8.2 million to $8.6 million.

The company said that based on the strength of both RECELL commercial revenue and BARDA related revenue, the company is raising its FY21 fourth quarter guidance to be in the range of $9.5 million to $9.7 million. That consists of between $6 million to $6.2 million of RECELL commercial revenue and $3.5 million of RECELL revenue associated with BARDA (that stands for the Biomedical Advanced Research and Development Authority within the Office of the Assistance Secretary for Preparedness and Response).

This revised RECELL commercial revenue guidance reflects a 55% to 60% increase over the prior year period and 30% to 34% increase over the third quarter of FY21.

Dr Mike Perry, Avita Medical’s CEO, said:

As people begin to return to normal activities after the confines of the COVID-19 pandemic, we have seen an increase in burn accidents requiring treatment with the RECELL System in burn centers across the country.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price increased by more than 1% in response to its Victorian claims update after severe storms and flooding.

The ASX 200 insurance giant said it had received around 4,300 claims as of 15 June 2021, predominately for property damage and expects claims to rise as residents return to their homes to inspect the damage.

IAG said that its net natural perils claim costs up to 31 May 2021 were approximately $660 million, including the net cost of Cyclone Seroja in Western Australia in April 2021.

Following the storms in Victoria and including estimated attritional peril costs in June, IAG estimates its FY21 net natural perils claim costs will be approximately $720 million to $743 million compared to the perils allowance of $658 million for this period and previous guidance of $660 million to $700 million.  

Shaver Shop Group Ltd (ASX: SSG)

The Shaver Shop share price fell more than 8% today after giving an update about its FY21 outlook.

Based on unaudited management accounts to May 2021 and the trading performance to the middle of June 2021, Shaver Shop’s board expects the company to generate net profit after tax of $16.75 million to $17.5 million.

Total sales are expected to come in a range of between $211 million to $213 million.

Net cash (no debt) at 30 June 2021 is expected to be between $6 million and $8 million.

Shaver Shop’s board said it remains pleased with the underlying trading performance of the business with customer service metrics remaining strong.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. 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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