2 popular ASX 200 healthcare shares tanking on earnings updates

Let's check out the earnings reports from these two ASX 200 healthcare shares today.

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ASX 200 healthcare shares are among the worst-performing market sectors on Tuesday, with the S&P/ASX 200 Health Care Index (ASX: XHJ) down 0.86% at the time of writing.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is also lower, down 0.17%.

As earnings season rolls on, let's take a look at the reports for popular ASX 200 healthcare shares Polynovo Ltd (ASX: PNV) and Healius Ltd (ASX: HLS).

ASX 200 healthcare shares in the red as earnings season continues

Polynovo shares lower despite confirmation of profitability

The Polynovo share price dropped 3.96% to an intraday low of $1.94 this morning. The ASX 200 healthcare share is currently changing hands for $1.98, down 2.23%.

The medical devices developer specialising in burns and wound care released its results for 1H FY24 today.

Polynovo reported record sales worth $42.2 million, up 54.9% on 1H FY23 and revenue of $48.8 million, up 65.6%.

The company delivered a net profit after tax (NPAT) of $2.7 million compared to a $3.8 million loss in 1H FY23.

The company reported most of today's numbers in a trading update on 22 January. On the day, the Polynovo share price closed 9.43% higher.

So, today's tumble may be more reflective of general market forces given ASX 200 healthcare shares are down overall.

Healius shares lower as COVID revenue dries up

The Healius share price plummeted 9.35% to an intraday trough of $1.26. The ASX 200 healthcare share is currently sitting at $1.31 per share, down 5.27%.

The pathology services provider released its 1H FY24 report today.

Healius reported group revenue of $847.4 million, up 4.9% on 1H FY23.

Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at $159.1 million. EBIT was in line with guidance at $15.7 million.

Healius said:

The comparison to 1H 2023 is impacted by the 97% reduction in Covid testing revenue as
the impact of Covid revenue in 1H 2023 is cycled out equating to EBIT of $24.0 million.

COVID-related revenue in 1H FY24 was $1.7 million versus $56.1 million in 1H FY23. This contributed to a net loss after tax of $14.2 million in 1H FY24 compared to an $8.1 million net profit in 1H FY23.

The company noted a non-cash impairment charge to goodwill in the pathology segment of $603.2 million.

Motley Fool contributor Bronwyn Allen 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 PolyNovo. 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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