This high-performing ASX All Ords stock just crashed 12% on its earnings results. Here's why

Investors sent the ASX All Ords stock plunging following its full-year results. But why?

| More on:
digitised image of IVF taking place representing Virtus share price

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

sdf

The All Ordinaries Index (ASX: XAO) is up 0.4% in early afternoon trade, but it's not getting any help from this crashing ASX All Ords stock.

The company in question is Monash IVF Group Ltd (ASX: MVF).

Before market open this morning, shares in the assisted reproductive services provider were up 20% over 12 months.

But those gains are fast fading. At the time of writing, the Monash IVF share price is down 11.7%, trading for $1.25 a share.

This underperformance comes following the release of Monash IVF's financial results for the year ending 30 June (FY 2024).

Here are the highlights.

ASX All Ords stock falls on full-year net loss

  • Revenue of $255 million, up 19.4% from FY 2023
  • Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $62.8 million, up 5% year on year
  • Underlying net profit after tax (NPAT) of $29.9 million, up 17% from FY 2023
  • Reported net loss after tax of $5.9 million
  • Final fully franked dividend of 2.5 cents per share, up 13% from the prior final dividend

What else happened with Monash IVF in FY 2024?

Among the bigger tailwinds hitting the ASX All Ords stock today is the full-year net loss after tax of $5.9 million. Monash IVF noted that this was driven by the estimated $32.6 million loss after tax attributable to the settlement of the NiPGT class action.

The legal action was taken against Monash IVF in 2020, relating to the company's non-invasive pre-implementation genetic screening technology.

Commenting on the class action, Monash IVF CEO Michael Knaap said, "This has been a very challenging and emotional period for all parties, with the mediation and resultant agreed settlement providing financial certainty and allowing all parties to move towards closure."

As for Monash IVF's three businesses – Domestic IVF, Women's Imaging and International ARS – the company reported strong revenue and earnings growth from all three.

Monash also said its market-leading success rates increased by 1.5% to 40.5% over the year.

Management also reported that the major infrastructure transformation the ASX All Ords stock has invested in over recent years is nearing completion. The new Brisbane Clinic is scheduled for completion in the 2025 calendar year.

In other key financial metrics, the company maintained its EBITDA margin at 25%.

Net debt increased by $17.7 million over the 12 months, standing at $48.7 million as at 30 June.

The company's syndicated debt facility was extended to February 2027 and increased from $50 million to $90 million.

What did management say?

Commenting on the results that have failed to boost the ASX All Ords stock today, Knapp said:

Monash IVF Group has delivered a second consecutive year of double-digit revenue and underlying earnings growth, which is a significant achievement given the ongoing cost of living and inflationary pressures impacting the broader macroeconomic environment.

This resilient performance reflects the largely non-discretionary nature of IVF and ultrasound services, combined with the benefits of our geographic diversification, across both Australia and SE Asia…

Our market leading success rates continue to move from strength to strength reflecting our leading-edge science and world class embryology team.

What's next for the ASX All Ords stock?

Looking at what could impact the ASX All Ords stock in the year ahead, Monash IVF said it expects to achieve revenue and underlying NPAT growth in FY 2025 compared to FY 2024.

Knapp noted, "Our diversified revenue base across domestic ARS (presence in all mainland capital cities), ultrasound and SE Asia provides a stable platform for Monash IVF to deliver sustainable revenue and earnings growth."

Monash IVF share price snapshot

With today's big slide in the Monash IVF share price factored in, the ASX All Ords stock remains up 9% over 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

More on Earnings Results

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock is rocketing 26% on better than expected results

The KFC operator has delivered on expectations with its FY 2025 results.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Earnings Results

Which ASX 200 stock is up 5% to a 52-week high on results day?

This blue chip is having a strong start to the week. Let's find out why.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »