The Australian Clinical Labs Ltd (ASX: ACL) share price climbed to a new high of $3.88 during trading today. This follows the pathology service provider's announcement that it has upgraded its earnings forecast for the 2021 financial year.
At close of trading, the company's shares had lowered slightly to $3.74, but were still up 5.35%.
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What did Australian Clinical Labs announce?
Investors drove up the Australian Clinical Labs share price after the company provided an improved performance outlook.
In a statement to the ASX, the company stated it had exceeded its original projections in the prospectus released in late April.
The revised FY21 guidance is forecasting total revenue of between $657.7 million and $663.3 million. This is up to 3% higher than the $647 million projected in the prospectus.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is also expected to surge by between $217.4 million and $222.3 million. The adjusted result reflects a lift of up to 7% on the $207.7 million assumed in April.
And lastly, net profit after tax (NPAT) is predicted to jump by between $82 million and $85.4 million. In comparison to the $74.5 million stated in the prospectus, this is an increase of up to 15%.
Australian Clinical Labs noted the boost in numbers was driven by revenue growth, with costs kept in line or below the prospectus forecasts. In addition, the prospectus contained just 7 months of actual result, with the 5 remaining months based on company projections.
Australian Clinical Labs CEO and executive director Melinda McGrath commented:
We are pleased with the positive momentum across the business despite the continued uncertainties arising from COVID-19. It is anticipated that the FY21 pro-forma NPAT will be 10% to 15% higher than the FY21 forecast disclosed in the prospectus.
Share price snapshot
Australian Clinical Labs is a leading provider of pathology services in Australia. The company has 86 laboratories accredited by the National Association of Testing Authorities and performs a comprehensive range of services for doctors, patients and corporate clients.
Since listing on the ASX in mid-May at a price of $4 apiece, Australian Clinical Labs shares are slightly down.
Australian Clinical Labs has a market capitalisation of roughly $760 million, with more than 201 million shares outstanding.
