Pro Medicus (ASX:PME) share price jumps after FY21 result

Investors are buying up Pro Medicus shares today after its FY21 results…

| More on:
A group of science or medical professionals cheering good news in the lab.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pro Medicus Limited (ASX: PME) share price is moving higher in early trade on Wednesday. This follows the healthcare imaging company releasing its full-year results for FY21.

At the time of writing, Pro Medicus shares are fetching $58.42 apiece, up 3.4%.

Pro Medicus share price rises on

  • Revenue from customers increased 19.5% to $67.9 million
  • Underlying profit before tax up 41% to $42.6 million compared to prior year
  • Net profit after tax attributable to shareholders increased 33.7% to $30.9 million
  • Fully franked final dividend of 8 cents per share declared, taking total dividends in FY21 to 15 cents per share
  • Record number of new contracts announced during the year
  • Company remains debt free, increasing cash and other financial assets to $61.8 million, up 42.4%

What happened in FY21 for Pro Medicus

It was another record financial year for the healthcare imaging company valued at a $5.98 billion market capitalisation. Pro Medicus was undeterred by the pandemic, delivering a significant 19.5% increase in revenue from customer contracts — taking the total to $67.9 million.

During the year, sales and implementations initiatives were at an all-time high, demonstrating the minimal impact COVID-19 restrictions had on the business. This enabled the company to cement several milestone contracts in FY21. Some of these include the $25 million 7 year deal with NYU Langone Health and the $40 million 7 year contract with Intermountain Healthcare.

Despite significant currency fluctuations, Pro Medicus' bottom-line earnings came in at $30.9 million — representing an increase of 33.7% on the previous year.

The significant uptick in profit has allowed the board to declare a fully franked final dividend of 8 cents per share. This takes total FY21 dividends to 15 cents per share, giving an indicative yield of 0.26%.

What did management say?

Commenting on the result, Pro Medicus Chief Executive Officer Dr Sam Hupert said:

It was our most successful year by any measure. All of our key financial metrics headed in the right direction. We foreshadowed a step-up in revenue this year despite currency headwinds and lower numbers in the first quarter due to COVID restrictions and we have delivered on that. Margins continued to increase as did our cash and other financial assets. It was also our biggest year in terms of both sales and implementations, laying the
foundation for a further step-up in exam volumes in FY22

Additionally, regarding the company's pipeline potential, Mr Hupert said:

Although we had a record year in terms of new contracts, our pipeline remains very healthy both in terms of quality and quantity. There is a good mix across the spectrum of opportunities; some cloud, some on-premise, some academic and some in the non-academic-IDN space as well as in the for-profit and private sector.

What's next for Pro Medicus?

Pro Medicus did not specify any outlook or guidance for FY22. However, the company remains focused on expanding its customers through its pipeline. Notably, a number of opportunities are for more than one Visage product.

Additionally, Pro Medicus continues to develop products with its AI Accelerator program.

Pro Medicus share price snapshot

The Pro Medicus share price has returned an impressive 131% to shareholders over the past year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed 22.8% during the same time frame.

Based on the current share price, Pro Medicus is trading on a 194 times price-to-earnings (P/E) ratio.

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »