Sonic Healthcare experienced a surge in its share price on Thursday, becoming one of the top performers on the index after the release of its half-year results. Investors responded favourably to the company’s financial update, driving up demand for the stock. Sonic Healthcare is a medical diagnostics company, providing pathology and radiology services to medical practitioners, hospitals, and community health services. The company operates internationally, with a significant presence in Australia, the United States, and Europe.
RBC Capital Markets analyst Craig Wong-Pan characterised Sonic Healthcare’s results as largely in line with expectations and marginally ahead of consensus estimates. Key markets including Australia, the US, and Germany either met or surpassed forecasts. The Australian pathology sector demonstrated robust growth, with revenue increasing by 5 per cent, surpassing its competitors. Furthermore, the underlying EBITDA margin stood at 18.1 per cent, reflecting a 30-basis-point increase year-on-year.
Wong-Pan highlighted that the management team reaffirmed its FY26 EBITDA guidance, projecting figures between $1.87 billion and $1.95 billion. Additionally, the company has slightly lowered its depreciation guidance. Management has also outlined capital management strategies, encompassing a sale-and-leaseback arrangement for a Brisbane laboratory, the disposal of surplus properties, and a possible on-market share buy-back program. Wong-Pan anticipates a positive market response to these developments.
As of the latest trading update, Sonic Healthcare’s shares were up by 9.5 per cent, indicating strong investor confidence in the company’s performance and strategic direction.
