3 ASX healthcare shares punished following full-year results

It wasn't so rosy for all those reporting earnings today

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Key points

  • These 3 ASX healthcare shares were all punished following their FY22 results today
  • Profitability, or lack thereof, appears to be a common theme
  • The ASX healthcare index closed higher on the day

ASX healthcare shares have been a mixed bag this earnings season, with some names completely blowing it out of the park, whereas others have left more to be desired.

The S&P/ASX 200 Health Care index (ASX: XHJ) finished up 122 basis points today and has climbed over 1.6% in the past month of trade as well.

Within the basket, these three shares are standouts – but to the downside, not to the upside – after their FY22 results. Let's take a look.

Mayne Pharma Group Ltd (ASX: MYX)

Shares of Mayne Pharma finished the day more than 3% down after its FY22 earnings. Just the day prior, it had nudged past 52-week highs of 38.5 cents.

It now rests at 32 cents at the close on Friday.

In its results, the company reported a 6% gain in revenue. However, this wasn't reflected further down the income statement.

Instead, Mayne printed a net loss after tax of $263 million for the 12 months.

Investors were undoubtedly dissatisfied with the result and sold off shares en masse today, with total volume reaching almost 4.1 million shares.

Atomo Diagnostics Ltd (ASX: AT1)

Shares in Atomo also slipped further into the red today and finished 2% lower at 7.1 cents apiece.

In its report, the company printed an 83.7% year-on-year gain in revenue to $12.34 billion. However, the loss operations worsened by 5% to $5.7 million.

It also left the year with $13 million in cash and no bank debt, putting it in the position to "vigorously pursue its strategic goals in FY23".

Despite the optimism, investors weren't on board with the company today and sold down shares at a volume of more than 158% of the 4-week average.

This brings losses to 76% for the year to date for the company.

MedAdvisor Ltd (ASX: MDR)

Shares in MedAdvisor also finished the day almost 7% down at 14 cents apiece following the release of its FY22 results.

In its report, the company saw operating revenue climb by 75% year on year to $67 million, leading gross margin to climb by 17% to $35 million.

However, in tandem with the other two ASX healthcare shares mentioned above, MedAdvisor saw its loss after tax increase to $17.5 million, worse than last year's result.

Unsurprisingly, therefore, investors punished the share today and drove it back in line with its 52-week closing lows.

It seems that investors were searching for profitability within the ASX healthcare space this earnings season. Those names who failed to demonstrate it or at least a reasonable path to achieving profit are being punished.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended MedAdvisor. 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 Scott Phillips.

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