Ramsay Health Care Full Year 2024 Earnings: EPS Misses Expectations

Ramsay Health Care (ASX:RHC) Full Year 2024 Results

Key Financial Results

• Revenue: AU$16.7b (up 11% from FY 2023).
• Net income: AU$253.9m (down 4.3% from FY 2023).
• Profit margin: 1.5% (down from 1.8% in FY 2023).
• EPS: AU$1.11 (down from AU$1.16 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Ramsay Health Care EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.5%.

The primary driver behind last 12 months revenue was the Australia segment contributing a total revenue of AU$6.05b (36% of total revenue). Notably, cost of sales worth AU$14.6b amounted to 88% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to AU$1.08b (61% of total expenses). Explore how RHC's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Healthcare industry in Australia.

Performance of the Australian Healthcare industry.

The company's shares are down 11% from a week ago.

Risk Analysis

We should say that we've discovered 2 warning signs for Ramsay Health Care (1 is potentially serious!) that you should be aware of before investing here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.