It's looking like another strong day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has gained a healthy 0.38%, putting the index back over 7,500 points. But let's discuss the Polynovo Ltd (ASX: PNV) share price.
Polynovo shares are putting the gains of the broader market to shame so far this Tuesday. At present, the ASX 200 healthcare stock is up a whopping 8.16% at $1.88 a share. That's after Polynovo stock lifted as high as $1.92 soon after market open this morning (up more than 10% at the time).
So what's going on with this healthcare company today that is resulting in these kinds of stellar share price moves?
Polynovo shares spike 10% on bumper trading result
It seems that these gains can be put down to the trading update Polynovo released yesterday during trading hours.
As we briefly touched on yesterday afternoon, this indicative trading update (covering the first half of FY2024) was probably responsible for Polynovo shares' near-10% rise for Monday's session.
It's not too hard to see why.
Polynovo told investors that its total global revenue for the first half of FY2024 came in at 48.8 million, up 65.6% from the $29.5 million recorded at this time last year.
The company also achieved a record sales revenue of $42.2 million (up 54.9%), as well as U.S. sales of $32.2 million (up 41.7%).
Rest of world sales rocketed 122.2% to $10 million.
The company also reported positive earnings before interest, tax, depreciation and amortisation (EBITDA), and a net profit after tax (NPAT) for the period. Excluding non-cash items, Polynovo achieved an underlying EBITS of $3.6 million for the period.
Polynovo chair David Williams had this to say on these numbers:
While I view profit as a 'nice to have', I am more excited by the significant near-term revenue growth possibilities from our expanding geographic footprint and the new ways surgeons have found to use our products. Profits will drop naturally out of the drive and success in expanding our geographies and products.
Given most of yesterday's strong share price gains came after Polynovo released this update, it seems that we can thank it for both those gains, and the further rise we are seeing today.
But despite these gains, the Polynovo share price remains down by 25.8% over the past 12 months.
