Why is the Healius share price sinking to a 52-week low today?

Healius shares are ending the week in the red…

| More on:
Disappointed man with his head on his hand looking at a falling share price his a laptop.

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

Key points

  • Healius shares are sinking on Friday
  • This follows the release of a trading update this morning
  • The healthcare company revealed that its earnings softened in the second half

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.

Adora sale

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.

More on Healthcare Shares

Female doctor with a mask holds out hand in a stop gesture.
Capital Raising

Up 90% in 2 weeks, here’s why the Paradigm share price has been halted

The biopharmaceutical company is planning a capital raise.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Broker Notes

Goldman Sachs gives its verdict on the CSL share price

Where next for CSL's shares?

Read more »

Healthcare Shares

Mayne Pharma share price rockets 25% on $680 million payday

It's been a good day for the ASX pharmaceutical company.

Read more »

Two researchers discussing results of a study with each other.
Healthcare Shares

What’s with the Polynovo share price on Wednesday?

Shares in the ASX medical devices company hit their year to date high today before retreating again.

Read more »

A man in a wheelchair stretches both arms into the air in success.
Healthcare Shares

Imugene share price lifts 11% on clinical trial update

Imugene shares are flying higher today.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

Why is the Polynovo share price powering 6% on Tuesday?

A government grant is set to boost the medical devices company's production capability.

Read more »

A young woman slumped in her chair while looking at her laptop
Healthcare Shares

Mesoblast share price slides 8% following $65m capital injection

Mesoblast took a hit early in the session today.

Read more »

Medical technicians wearing white medical coats conduct a test in a laboratory.
Healthcare Shares

CSL share price climbs as $16 billion Vifor acquisition becomes effective

CSL shares are in the green on Tuesday...

Read more »