The ASX All Ordinaries Index (ASX: XAO) has had a bumpy few days of trading recently. Last Friday, the All Ords rose by a decent 0.3%, only to tank by a nasty 1.2% yesterday. Today so far, the Index has bounced back up by 0.48%. But let's talk about All Ords healthcare share Avita Medical Inc (ASX: AVH).
The Avita share price has been on fire in recent days. Last Friday, Avita shares rocketed by an impressive 20.15%. Then yesterday, investors doubled down on the buying action, sending the company up another 16.77%.
Today, the gains are slowing down, but Avita has still risen by a chunky 7.05%, putting the company at $3.95 a share.
Yes, last Thursday, Avita was going for $2.63 a share, but today is asking $3.95 at the time of writing. That's a 50.2% gain in just three trading days.
So what on earth is powering this rocket ship that is the Avita share price?
Avita share price rockets 50% after earnings report
Well, as you may have gleaned from the headline, it seems to be the result of Avita's latest earnings report. Last Friday, Avita announced its latest earnings to the market, covering the full 2022 calendar year.
It was a pleasing result for the company. Avita reported that over 2022, its commercial revenues grew by an impressive 36%, rising from $25.1 million in the previous year to $34.1 million for 2022. The company's gross profit margin was 82%, the same margin for 2021.
Meanwhile, Avita's net loss for the year came in at $26.7 million, which was slightly larger than 2021's loss of $25.1 million. That translates to losses of $1.07 and $1.03 per share respectively.
Here's some of what Avita CEO Jim Corbett had to say about Avita's future plans:
Looking ahead, 2023 is our year of inflection… We expect FDA approvals in June 2023 for our soft tissue repair and vitiligo indications, which we believe will be transformative for our company…
In anticipation, we expect to more than double our existing field sales organization, which will cover both burn and soft tissue accounts. This strategic expansion sets us on a path of revenue growth for the next three to five years.
So it's clear that these earnings have turbocharged investor sentiment on Avita shares over the past few days. To bag a 50% gain in three trading days is a very special thing indeed on the All Ordinaries Index, so no doubt Avita investors are feeling chuffed today.
This latest rise puts the Avita share price at a whopping 104.66% year-to-date gain as it currently stands:
