Pro Medicus shares slide 15% on first-half revenue miss
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More news: Shares in medical imaging software business Pro Medicus slumped in morning trade after first-half revenue missed consensus expectations amid slightly higher operational costs.
At 11:07am AEDT, shares in Pro Medicus had fallen 14.9% to $142.72 and was down 50.5% over the last 12 months.
RBC Capital Markets analyst Garry Sherriff said Pro Medicus missed revenue consensus estimates by 2% and EBIT consensus by 10%, which Sherriff presumed was due to "contract phasing difficulties as the market struggles to estimate multiple large contract win contributions", although the outlook for the company pipeline "remains strong".
In a note to clients, Citi analysts said "reported profits were flattered by a $100m+ one-off associated with the revaluation of the company's stake in 4DX".
"The company narrative is unchanged - contract phasing means 2H is set to be stronger than 1H, so the main question for us is whether consensus's 'missing' revenue from 1H can simply be reassigned to 2H or whether it needs to be pushed out further," the Citi note reads.
Pro Medicus first-half revenue lifts $28m, 4D Medical investment underpins profit surge
The news: Medical imaging provider Pro Medicus has reported a $28.2 million year-on-year lift in first-half revenue to $128.9 million, behind consensus expectations for $131.8 million, according to Visible Alpha.
The numbers: It also reported that half-year after tax profit has more than tripled to $171.2 million, ahead of average forecasts of $72.2 million, according to Visible Alpha, amid $149.1 million in unrealised gains from its investment in ASX-listed 4D Medical as of 31 December 2025.
Meanwhile, underlying profit lifted 29.7% year on year to $90.7 million. The company declared a fully franked interim dividend of 32 cents per share, up from 25 cents a year earlier, just below consensus estimates of 35 cents per share.
The context: During the period, Pro Medicus announced seven new contracts.
Pro Medicus made a $10 million hybrid debt and equity investment in 4D Medical. The debt portion has a coupon rate of 12.5% per annum and will incur a $20 million payout if share prices more than doubles above 48 cents per share.
