Shares of Medibank Private Ltd (ASX: MPL) defied the market's foul mood on Wednesday, climbing more than 2% to a new record high at $2.50.
A favourite amongst investors, Medibank has been a boon for those lucky enough to have grabbed a parcel of shares in its highly anticipated float in November last year. Retail investors grabbed the stock for just $2, giving them a 25% paper profit in just under three months.
With the stock now trading on a multiple of 26.2 times last year's earnings, it's fair to assume the health insurance business' first earnings report will be almost as highly anticipated as the float itself. Investors will be eager to see how much progress the company has made in reducing costs and improving margins which will likely be a defining factor as to how the market reacts.
Indeed, it seems much of the market's hopes rest on the company's ability to improve its cost structure and a disappointing result would likely see investors flee for the exits – particularly given its rather lofty valuation.
Medibank confirmed that it would announce its half-year results for the period ending 31 December 2014 on Friday 20 February.
