Weekly | Nanosonics share price shoots 12% higher on FY24 report

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,091.90 on Friday, up 0.85% in the past 5 days.

1. $IMUGENE LTD(IMU.AU)$ +19.23%

• Imugene Limited is possibly approaching a major achievement in its business.Imugene Limited, a clinical stage immuno-oncology company, develops a range of immunotherapies to activate the immune system of cancer patients to treat and eradicate tumors in Australia.

• With the latest financial year loss of AU$38m and a trailing-twelve-month loss of AU$89m, the AU$375m market-cap company amplified its loss by moving further away from its breakeven target. A company's cash runway is calculated by dividing its cash hoard by its cash burn. In December 2023, Imugene had AU$139m in cash, and was debt-free. Looking at the last year, the company burnt through AU$73m.

• Since it has a market capitalisation of AU$434m, Imugene's AU$73m in cash burn equates to about 17% of its market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. Even though its increasing cash burn makes us a little nervous, we are compelled to mention that we thought Imugene's cash runway was relatively promising.

2. $NANOSONICS LTD(NAN.AU)$ +19.19%

• The share price of ASX 200 healthcare stock Nanosonics Ltd is 11.85% higher at $3.02 following the company's release of its full-year FY24 results. The Nanosonics share price opened at $2.86 and quickly ascended to an intraday high of $3.08 as investors digested news of a "significant turnaround" in the second half, with revenue rising 14%.

• Magellan clocked a 31% increase in annual profit to A$238.8 million ($158.13 million) for the year ending June 2024, driven by higher performance fees and reduced expenses. Nanosonics said there was a significant turnaround in 2H FY24, which reversed the negative revenue growth in the first half. Revenue in the second half was 14% higher than the first half. This resulted in an increase in overall total revenue for the year by 2% to $170 million.

• Nanosonics said research and development continued to be a cornerstone of future growth. The company invested $32.8 million in FY24, up 11% on FY23. The company said it progressed its Endoscope Reprocessing program with CORIS and new projects in its ultrasound reprocessing and connectivity product categories to advance its future product line.

3. $BEGA CHEESE LTD(BGA.AU)$ +16.44%

• The Bega Cheese Ltd share price is rocketing this week because the company reported its latest earnings covering the full 20204 financial year.

• Bega Cheese also reported a statutory profit after tax of $30.5 million, which was a pleasing turnaround from the statutory net loss of $229.5 million recorded over FY2023.

  Bega's final dividend of 4 cents per share represents a 33.3% increase over the 3 cents per share final dividend from last year. Together with the April interim dividend of 4 cents per share, it takes Bega's full-year payouts to 8 cents per share, a 6.67% rise over FY2023's total of 7.5 cents

4. $DOWNER EDI LTD(DOW.AU)$ +15.73%

• The Downer share price is up 15.73% to $5.59. This follows the release of a better than expected full year result from the integrated services provider. For FY 2024, Downer reported a 5.5% increase in revenue to $11,743.4 million and a 24.5% lift in underlying net profit after tax to $193.9 million.

• “Downer continued to build momentum in its results delivering a 34% increase in pro forma EBITA of $384.1 million and EBITA margin growth of 0.7 percentage points to 3.3% for FY24,” the company reported.

• Downer’s utilities business continued its turnaround to profitability with pro forma EBITA of $54.5 million (FY23: $10.7 million loss) “driven by a strong performance in telecommunications, the progressive completion of low margin contracts, settlement of contractual claims, the commercial reset of a loss-making power maintenance contract and the achievement of overhead cost reductions”.

5. $IDP EDUCATION LTD(IEL.AU)$ +10.52%

• The IDP Education Ltd share price is charging higher on Thursday morning. At the time of writing, the language testing and student placement company's shares are up 10.52% to $16.18. This follows the release of the company's FY 2024 results before the market open.

• For the 12 months ended 30 June, IDP Education delivered a 7% increase in revenue to a record of $1,037 million. This was driven predominantly by the company's Student Placement segment, which reported a 27% increase in revenue to $508.3 million. This offset an 11% decline in English Language Testing revenue in FY 2024.

• Management advised that its record student placement revenue was driven by strong increases in both volume and price. It also highlights that it significantly outperformed the market, achieving 17% volume growth, while the broader industry saw a 13% volume decline due to tighter visa settings in key destination markets.