Nanosonics nosedives after first-half earnings plunge 72%

The news: Shares in ultrasound disinfector manufacturer Nanosonics have tumbled by more than a third after the company flagged a 72% earnings drop in a first-half update.

The numbers: Nanosonic's earnings before interest and tax fell to $3 million from $10.7 million in 2023's first half, as operating expenses surged by 12%. Gross profit fell 2% to $63.4 million, and the company expects an operating pre-tax profit of $4.9 million for the half, less than half the $11.4 million secured in the prior corresponding period. NAN shares were trading 33.8% lower to $2.895 by 1:40pm AEDT, hitting their lowest level since December 2018 and almost 65% below their January 2021 all-time high.

The context: Nanosonics said hospital budgetary pressures were increasing uncertainty in the sector and leading to lower capital unit sales and delays in equipment upgrades. It will release its final H1 results on 26 February.