Sonic reaffirms FY2010 earnings guidance, cites US unit growths
Medical diagnostics firm Sonic Healthcare Ltd (ASX: SHL) reaffirmed on Friday the company's latest full-year guidance, adding that its US operations gained second half organic revenue growth of 3.6 percent while the same operation's organic volume growth notched up by 1.4 percent.
Earlier on May 20, Sonic said that the company would unlikely reach its earnings guidance for the full year 2010, citing that the government-imposed fee reductions on Australian Medicare for pathology services starting November 1 2009 had resulted to its dipping revenues.
Sonic estimated at that time that the firm's full year net profit would hover between $290 million and $295 million, which was barely a notch higher from the preceding year's profit on a constant currency basis, as it added that exclusive of future business acquisitions, the company's projected net earnings growth of up to 15 percent should be realised instead by the full year 2011.
However, with fresh appreciations of unaudited management accounts on June 30, the company was prompted to reaffirm its latest full year earnings guidance as it cited that ongoing solid growths from its US operations manifested better and competitive expansion rates as compared to Sonic's US rivals.
Sonic said that the US operations were actually affected by the adverse weather conditions prevalent then in the mainland America but the units still performed beyond the company's expectations as it added that the firm will release its full year result by August 24.
As of 1126 AEST on Friday, Sonic shares were trading at $10.04, collecting gains of 10 cents or 1.01 percent from the previous trading day.