The Sonic Healthcare Limited (ASX: SHL) share price is under pressure on Monday after the company released its FY21 results.
At the time of writing, shares in the medical diagnostics company are down 3.22% to $41.45.
What happened to the Sonic Healthcare share price?
Sonic Healthcare delivered a seemingly positive FY21 result with highlights including:
- Revenue of $8.8 billion, up 28% on the prior corresponding period (pcp).
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) lifting to $2.6 billion, up 81%.
- Net profit surging to $1.3 billion, up 149%.
Its shares opened relatively flat, down 0.19% to $42.75, before sellers took control, dragging the Sonic Healthcare share price down 4.41% to an intraday low of $40.94.
Did the results contain any negative surprises?
Sonic Healthcare said that its financial performance has been enhanced by COVID-19 testing revenue across its ~60 laboratories around the world.
The business flagged that COVID-19 PCR volumes were lower in the second half of the year versus the first half.
In the new financial year, it cited that volumes have been increasing with the spread of the Delta variant.
Looking ahead, the company said that it is not providing any earnings guidance for FY22 due to "COVID-19 related unpredictability".
Encouragingly, the company's base business (excluding COVID testing) grew by 6% versus FY20 and by 4% compared to FY19.
Sonic Healthcare highlighted that its base business "has become increasingly resilient to impacts of pandemic waves and benefits from geographical and business diversification".
That said, the volatility in COVID-19 testing revenues could be the catalyst behind today's selloff.
Another thing to consider is that the Sonic Healthcare share price closed at record all-time highs last Friday, 20 August.
Investors might be using today's news as an opportunity to take profits, despite what looks like an encouraging full-year result.
