Analyst Note| Grant Slade, CFA |
No-moat Healius had already announced fiscal 2020 underlying EBIT, which at AUD 102.7 million was 19.1% down on the previous corresponding period, or pcp. The decline is attributable to a steep decrease in the imaging segment in the second half as a result of the coronavirus impacting elective and other routine procedures. Although non-COVID-19 pathology testing also experienced a decline, COVID-19 testing revenue provided some relief and continues to boost revenue into fiscal 2021. Looking through the noise of the fiscal 2020 result, we calculate underlying EPS from continuing operations at AUD 8.9 cents per share, down 23.9% from AUD 11.7 cps in the pcp. Underlying results exclude the impacts of the new lease accounting standard AASB 16, strategic project spending, and other once-off items.