Pro Medicus stock falls after record-breaking earnings
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More news: Pro Medicus has see-sawed on the ASX following this morning's first-half earnings report, and is down 3.9% from open.
The medical imagery company made $100 million in revenue in the six months ending 31 December, a healthy improvement from the same period last year. That led to an initial run up 3.1%, taking the stock to $297.
Yet Pro Medicus' earnings were under analyst expectation, leading the market to sell the stock off to a low of $275 once it had digested the numbers.
What they said: "1H25 numbers came in below consensus," RBC Capital Markets analyst Garry Sherriff wrote in a note, "driven by the difficulty the market has estimating the phasing of contract contributions, particularly after 10+ contract wins over the last 12 months."
"Pro Medicus likely comes under pressure today given lofty multiples and [a] history of beating market expectations."
Pro Medicus delivers record half-year profit, revenue
The news: Medical imaging provider Pro Medicus has delivered record first-half profit and revenue on the back of key contract wins and upgrades.
The numbers: Pro Medicus reported an after-tax profit of $51.74 million for the six months to December 2024, up 42% from the same period last year. Revenue was up 25% to $100.7 million.
The jump in revenue was thanks to Pro Medicus' business booming in North America, where revenue rose by 34.6%. Revenue from Australia was also up over 30%, though Europe saw a more modest boost of 13% from a smaller base.
The context: Pro Medicus has been signing deals for its imaging software to be used in hospital and healthcare networks around the US. On 30 December, the penultimate day of the reporting period, it inked a $15 million contract with Duke University, which followed agreements with hospitals throughout America's South and Midwest.
Pro Medicus' revenue was also buoyed by a 10-year contract signed in 2023 with Baylor Scott & White, a healthcare network headquartered in Texas, which began rolling out last year.
What they said: “We feel it’s a strong result, underlined by record contract wins and several key implementations, including Baylor Scott & White [BS&W] — which was fully implemented in 11 months from date of signing, a record for the industry," said CEO Sam Hupert.
"BS&W contributed three months of full revenue in the half and will help build the base for the second half with a full six months of revenue.”
Pro Medicus CEO Dr Sam Hupert said he was very pleased with the result, which was a record for the company in terms of both revenue and net profit, as well as new contract wins, renewals and upgrades.
The source: ASX announcement
