Why Evolution Mining, Altium, Sonic Healthcare shares surged today

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Why Evolution Mining, Altium, Sonic Healthcare shares surged today

Sonic Healthcare, Altium, Evolution Mining shares surged on Thursday
Image source: © Stbernardstudio | Megapixl.com

Highlights

  • Sonic Healthcare shares gained 5% following trading updates.
  • Shares of Altium rose 4% after it reaffirmed earnings guidance for FY22.
  • Evolution Mining (ASX: EVN) rallied over 9% amid an acquisition news.

The Australian share market witnessed lacklustre trade on Thursday as gains in healthcare, property and telecom stocks were offset by losses in energy and financial companies. The ASX 200 index gained 0.2% by mid-session, led by gains in index heavyweights Evolution Mining (ASX: EVN), Nufarm (ASX:NUF), Chalice Mining (ASX:CHN), Altium (ASX: ALU), and Kelsian Group (ASX: KLS).

Stocks that dominated trade on the ASX today include Sonic Healthcare, Evolution Mining, Altium. Here’s why these shares grabbed headlines today:

Sonic Healthcare

Shares of Sonic Healthcare (ASX: SHL) surged as much as 5% to hit an intraday high of AU$40.50 apiece on Thursday after it released a trading update for four months ended October 2021.

The medical diagnostics company informed its shareholders this morning that it has posted 16% growth in earnings before interest, tax, depreciation and amortisation (EBITDA) to AU$991 million in the first four months of the 2022 financial year. Revenue grew by 5% to AU$3.1 billion, compared to the same period a year ago.

The pathology giant, however, did not provide earnings guidance for 2020 financial year due to business uncertainties caused by the COVID-19 pandemic. The company said that the pandemic led to fluctuations in both COVID-19 testing revenues and base business.

Updating on the coronavirus-specific services, the company said it has administered about 36 million COVID-19 PCR tests to date, while it provided more than 1 million shots to the community through its network of more than 200 medical centres.

Altium

The share price of Altium (ASX: ALU) rose 4% to touch the day’s high of AU$41.48 after the software company reaffirmed earnings guidance for 2022 financial year.

Speaking at the Annual General Meeting (AGM), CEO Aram Mirkazemi told investors that the company was on track to achieve its guidance in FY22. The company has committed to achieve 16-20% growth in revenue and an underlying EBITDA margin of 34-36%.

The company did not disclose how the business had performed so far this fiscal, but did offer some details on the key drivers. Altium expects to drive organic growth through adoption of Altium 365, which will improve its subscription renewal rate. Altium 365 is a cloud-based electronics product, which unites Printed circuit boards (PCBs) design and helps in data management, and teamwork. The software company believes that rise in demand for smart manufacturing will boost revenue.

Evolution Mining

Shared of Evolution Mining (ASX: EVN) rallied as much as 9.2% to hit a four-month high of AU$4.38 following an acquisition news.

The share price surged after the miner said it has inked a pact with Swiss giant Glencore to acquire 100% stake in Ernest Henry Mining. The company would spend AU$1 billion to buy the world class Ernest Henry copper-gold mine located around 38km north-east of Cloncurry, Queensland.

The transaction comprises AU$800 million payable upfront following completion of the deal, and AU$200 million payable on the first anniversary of transaction completion.

The deal will beef up Evolution’s copper production, lowering its all-in sustaining cost per ounce, cementing its position as one of the lowest cost gold producers in the world.

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