Advanced Medical Solutions stock surges on FY2024 outlook

Investing.com -- Shares of Advanced Medical (TASE:PMCN ) Solutions Group (LSE:AMS (VIE:AMS2 )) climbed 11% following the company's latest trading update, which revealed expectations for FY2024 financials to be in line with previous forecasts.

The medical technology company announced anticipated revenues of approximately £177m, EBITDA between £40.0m and £40.5m, and adjusted PBT ranging from £29.2m to £29.7m, aligning with the FactSet consensus.

The update also highlighted the successful integrations of Syntacoll, completed on March 1, 2024, and Peters Surgical, completed on July 1, 2024.

Advanced Medical Solutions reported continued strong growth across all surgical product categories and anticipates that the Woundcare restructuring, announced during the first half results, will positively impact margins in 2025. However, the company refrained from providing specific guidance for 2025.

RBC analyst Jack Reynolds-Clark commented on the company's performance, stating, "we see expectations as de-risked by the strong momentum the company is clearly demonstrating."

This endorsement from an industry analyst may have contributed to the positive investor sentiment driving the stock's upward movement.

Investors appear to be responding to the company's steady progress and strategic acquisitions, which seem to be paying off in terms of operational performance. The mention of Woundcare restructuring as a potential booster for future margins has also likely fueled expectations of increased profitability down the line.

Advanced Medical Solutions' current trajectory, as detailed in the trading update, suggests that the company is on a stable path to meet its targets for the fiscal year 2024.

While the lack of specific guidance for 2025 leaves some questions for the future, the affirmation of the FY2024 outlook, coupled with the positive analyst outlook, has resonated well with the market, as reflected in the stock's significant leap in today's trading session.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com