The market may be storming higher today but the same cannot be said for the Healius Ltd (ASX: HLS) share price.
In morning trade, the healthcare company’s shares are down 8% to a 52-week low of $3.82.
Why is the Healius share price sinking?
Investors have been selling down the Healius share price on Friday after the healthcare company released a trading update.
According to the release, Healius revealed that trading has been broadly in line with its update from last month. However, in response to ongoing market volatility and the range of broker forecasts, it has provided more colour on what this means for its earnings.
Healius revealed that its unaudited underlying earnings before interest and tax (EBIT) for the year-to-date to May is in the order of $473 million.
This means that it has added less than $100 million of EBIT in the second half, with one month remaining. This compares to EBIT of $376.1 million during the first half.
Management advised that it has been facing difficult market conditions in the second half of the financial year. Though, it has been trading slightly ahead of Medicare in its core businesses and COVID testing remains around 15,000 per working day in May.
In other news, the company has advanced its portfolio simplification as a diagnostics operator with the completion of the Adora Fertility sale this week.
Looking ahead, management advised that it remains focused on growing its core pathology and imaging businesses, where it believes it is well-positioned as an incumbent operator with operating leverage. It will also aim to grow its emerging diagnostic positions, underpinned by its market-leading digital program.
The Healius share price is now down 25% in 2022.