Sonic Healthcare shares rise on reaffirmed FY guidance
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More news: Sonic Healthcare shares were trading higher on the ASX after the pathology services group reiterated its full-year guidance and posted double-digit revenue growth for the first four months of FY25.
Sonic shares were up 4.5% to $27.37 by 11am AEDT, having shed around 15% since the turn of the year.
Sonic Healthcare reaffirms FY25 guidance
The news: Pathology services provider Sonic Healthcare reaffirmed its full-year guidance after revenue climbed 10% during the first four months of the 2025 financial year compared to a year ago.
The numbers: Sonic said it is on track to meet its EBITDA guidance of $1.7 billion to $1.75 billion issued in August, reflecting up to 10% growth on FY24.
The company recorded total revenue growth of 10% during the four months to October, with organic revenue growth of 5%. Revenue growth was strongest in its Australian pathology (8%) and radiology (11%) businesses, but weaker in the US.
The context: In prepared remarks ahead of today's annual general meeting, Sonic chair Mark Compton said that future earnings growth is being driven by ongoing strong organic revenue growth with consequent operating leverage.
It is also boosted by cost reduction programs and earnings initiatives implemented in FY24 and the current year, he said, as well as the realisation of synergies and enhanced earnings from completed acquisitions and technology investments.
The sources: ASX announcement, ASX announcement
