Guess which ASX 300 healthcare stock just rocketed 20% on BIG earnings growth

Investors are piling into the ASX 300 healthcare stock on Monday. But why?

| More on:
Two lab workers fist pump each other.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 300 Index (ASX: XKO) is down 0.3% today, but ASX 300 healthcare stock Mayne Pharma Group Ltd (ASX: MYX) is racing in the other direction.

Shares in the Aussie pharmaceuticals company closed on Friday trading for $4.68. During the Monday lunch hour, shares are swapping hands for $5.60 apiece, up 19.7%.

That's enough to lift the Mayne Pharma share price's one-year performance back into the green, up 3.8% over 12 months.

Here's what spurring buying interest in the ASX 300 healthcare stock today.

ASX 300 healthcare stock rockets on strong growth

The Mayne Pharma share price is going ballistic after the company released its preliminary half-year results for the six months ending 31 December.

The company announced that it expected its H1 FY 2025 revenue to be between $210 million and $215 million. This represents a 12% to 14% year-on-year revenue increase.

On the earnings front, Mayne Pharma said it expected to report 1H FY 2025 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $30 million to $32 million. This is up a whopping 275% to 300% from the company's H1 FY 2024 earnings.

The company credited the strong half-year earnings boost to continued growth across its Women's Health portfolio with increased operating leverage. The ASX 300 healthcare stock said its Dermatology unit also saw an improvement in margin, primarily through its product mix.

What did management say?

Commenting on the strong half year for the ASX 300 healthcare stock, Mayne Pharma CEO Shawn Patrick O'Brien said:

We have experienced solid trading conditions in the first half as we execute against our corporate strategies, with robust revenue growth recorded particularly within our Women's Health segment.

We look forward to further updating our investors on our progress and plans at the half year results presentation in late February.

Mayne Pharma is scheduled to release its audited half-year financial results on 26 February.

Management noted that Mayne Pharma's performance since the update provided at its annual general meeting (AGM) on 21 November should be reflected across the entire half and not assumed as a two-month run rate going forward.

As for what investors might expect from the ASX 300 healthcare stock in the second half of FY 2025? The company said it expected to see continued growth, with some seasonal cost impacts from patient payment programs as deductibles reset, along with an increase in promotional expenses for its Women's Health products to drive additional growth.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Donor donates blood in medical clinic. Beautiful European woman of 30 years sits in medical chair looking into camera and smiling.
Healthcare Shares

Now trading at an 'attractive price', why CSL shares look set for a rebound

These leading fund managers expect CSL shares to put in a much stronger performance in FY 2026.

Read more »

three excited doctors with hands in the air
Healthcare Shares

Why Macquarie forecasts a 22% upside for this ASX All Ords healthcare stock

Macquarie expects a big rebound ahead for this ASX healthcare stock. But why?

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Healthcare Shares

Guess which ASX All Ords stock is jumping 9% on $1.6b market opportunity

This small cap is having a big day. But why?

Read more »

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Healthcare Shares

75% upside: Broker tips two ASX healthcare shares

This broker sees big potential in these two Australian healthcare companies 

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

What does the Macquarie Hospital Claims Index mean for ASX 200 health insurance stocks?

Macquarie shares its view on Medibank Private and NIB Holdings.

Read more »

Two lab workers fist pump each other.
Broker Notes

What's JP Morgan's price target on CSL shares?

Are CSL shares undervalued or will they continue to underperform?

Read more »

Portrait, confidence and team of doctors in the hospital standing after a consultation or surgery. Success, healthcare and group of professional medical workers in collaboration at a medicare clinic.
Healthcare Shares

2 ASX healthcare stocks making huge moves on big news

These shares are getting investors excited today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Healthcare Shares

Which ASX All Ords stock is up 15% on guidance upgrade?

Let's find out what is getting investors excited on Tuesday.

Read more »