- Sonic Healthcare (SHL) has joined other ASX-listers in withdrawing their earnings guidance for FY20 due to the uncertainty of the COVID-19 pandemic
- Sonic questions the impact of routine services and diagnostic testing as people have started self-isolation or are quarantined
- Currently, the global healthcare company has turned its focus to COVID-19 testing and is trying to keep up with the demand for equipment needed to test thousands of people
- However, the ASX 200-lister has nearly $1 billion in cash on hand and no debt payments due until next year
- This is expected to mitigate the financial effects of the virus
- Sonic Healthcare is down 8.72 per cent and shares are trading for $22.62 cents each
Sonic Healthcare (SHL) has joined other ASX-listers in withdrawing their earnings guidance for FY20 due to the uncertainty of the COVID-19 pandemic.
Sonic believes its trading results remain consistent with the earnings guidance it previously provided, however as people have started self-isolating or are quarantined, diagnostic testing may be impacted.
Sonic Healthcare is an ASX 200-listed global healthcare company. It provides laboratory, pathology, radiology and diagnostic imaging services.
The company has a strong balance sheet of almost A$1 billion of cash and committed credit facilities currently available. Additionally, none of its debt payments are due until 2021.
“As a global laboratory company, Sonic is currently playing a crucial frontline role in combating the pandemic,” CEO Dr Colin Goldschmidt said.
“Our laboratories in Australia, the U.S. and Europe are testing thousands of patients every day for COVID19, and we continue to increase our testing capacity to meet the needs of the communities in which we operate,” Dr Colin added.
During this period, the company is working as quickly and efficiently as it can with suppliers to ensure it keeps up with the demand for materials and equipment for COVID-19 testing.
“I could not be prouder of the reaction of Sonic’s people to this crisis. The level of effort, dedication, communication, and global collaboration has been truly inspiring,” he concluded.
Sonic Healthcare is down 8.72 per cent and shares are trading for $22.62 cents each at 3:00 pm AEDT.