- Sonic Healthcare projects an Ebitda of A$1.60 billion for FY 2024, lower than the initial expectation of a minimum of A$1.70 billion.
- Revenue for FY 2024 is predicted to be approximately A$8.9 billion.
- The company’s profit growth for the period from January to April has been less than expected due to inflation and currency exchange issues.
- Several projects aimed at improving margin were delayed in the second half of FY 2024 but are now expected to boost earnings in FY 2025.
- Further projection sees Sonic achieving an EBITDA of about A$1.70b – A$1.75b in FY 2025, considering the existing currency trend.
- The FY 2025 forecast includes potential setbacks like a possible PAMA fee cut in the US (A$15m), initial losses on the UK Hertfordshire & West Essex NHS contract (A$10m), and an equity accounted loss for Franklin.ai (A$5m).
- An update for the FY 2025 guidance will be provided during Sonic’s full-year results announcement in August.
- Despite challenges, organic revenue growth remains robust at 6% over the four-month period.
- Sonic’s performance in the market includes 6 buy ratings, 7 hold ratings, and 3 sell ratings.
- All comparisons with past results are made using values reported by the company in original disclosures.
A look at Sonic Healthcare Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, Sonic Healthcare‘s long-term outlook appears fairly positive based on Smartkarma Smart Scores. The company has received a moderate score of 3 in Value, Dividend, and Growth, indicating a solid performance in these key areas. This suggests that Sonic Healthcare offers reasonable value, dividend potential, and opportunities for growth in the future. Moreover, with a score of 3 in Momentum, the company seems to be maintaining a steady pace and showing promising signs of moving forward in the market.
However, Sonic Healthcare scored a 2 in Resilience, suggesting some vulnerability in this aspect. Despite this, the company’s overall outlook remains stable, reflecting its standing as a medical diagnostics firm providing pathology and diagnostic imaging services in various regions. Sonic Healthcare serves medical practitioners, hospitals, and patients in Australia, New Zealand, and Europe while offering administrative support and facilities to healthcare professionals.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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