Healthscope Ltd

HSO Details

Performance impacted by cost and impairments: Private hospitals’ operator, Healthscope reported a 38.8% drop in full year statutory net profit at the back of challenging market conditions and margin pressure. The result was impacted by an impairment loss of $54.7 million with regards to the recent sale of the group's medical centres and non-operating expenses after tax of $17.4 million. Further, dividends of 7 cents per share, were below the previous year figure of 7.4 cents. On the other hand, FY17 revenue jumped up 3.8% to $2.318 billion and operating EBITDA surged 3.5%. Further, Hospitals delivered revenue of $2,014.0 million up 3.4%, and operating EBITDA of $359.4 million up 1.3%. HSO expects FY18 Hospitals’ operating EBITDA to be like that of FY17. Given the overall result, the stock plunged 15.3% on August 23, 2017. We put a “Hold” recommendation at the current price of $ 1.85 

EPS and Dividend (Source: Company Reports)

Sirtex Medical Ltd

SRX Details

Focusing on opportunities in SIR-Spheres Y-90 resin microspheres’ market: Sirtex witnessed a stock price slip of 10.5% on August 23, 2017 while the group reported its FY17 results entailing 5% growth in global dose sales to 12,578 units and 0.8% product revenue growth to $234 million, and net loss after tax of $26.3 million against NPAT of $53.6m in prior corresponding period. The underlying EBITDA has gone down 17.3% to $61.5m (down 5.6% in constant currency) attributable to sales and marketing to support future growth and for reporting of major clinical studies. In fact, admin costs shot up due to class legal action fees. SRX now expects earnings accretion from its buy-back program to be skewed towards the FY18 period. The group intends to leverage opportunities in SIR-Spheres Y-90 resin microspheres’ market across the globe including France which is said to proffer high potential. At the back of present circumstances, we give a “Hold” recommendation on the stock at the current price of $ 14.56

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