Here's why the Healius (ASX:HLS) share price is storming 5% higher today

Let's take a deeper look.

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The Healius Ltd (ASX: HLS) share price has bolted more than 5% in today's trading session.

Shares in the healthcare company have rallied strongly after being sold-off yesterday after releasing its full-year results for FY21.

Let's take a look at why investors are bidding the Healius share price higher today.

Group of Imugene scientists cheering in the lab after the company received another patent for HER-Vaxx

Image source: Getty Images

Helius share price recovers from FY21 report

The Healius share price has managed to bounce strongly today, after being sold-off yesterday.

Shares in the healthcare giant tanked more than 7% yesterday after releasing its full-year results for FY21.

Investors were quick to dump their shares in Healius, despite the company reporting a 22% increase in revenue of $1,913.1 million for FY21.

Other highlights from the company's full-year report included;

  • Underlying earnings before interest and tax (EBIT) jumped 106% to $266.5 million
  • Net profit after tax up 179% to $148.4 million
  • Operating cash flow tripled to $912.8 million
  • Full year dividend of 13.25 cents, up from 2.6 cents in FY 2020

The company's pathology segment was a standout performer, with revenue in the sector growing 25% to $1,452.1 million for the financial year.

Healius attributed strong demand for community and commercial COVID-19 testing as the key driver of growth.  

In its full-year report, Healius highlighted that the company had processed 5.75 million tests to date.

Healius to increase COVID-19 testing capacity

With the Delta outbreak surging to new levels, pathology operators like Healius could see a renewed boom in demand.

The company's CEO Malcolm Parmenter recently cited these intentions in an article published by the Sydney Morning Herald.

Healius acknowledged that the company has processed approximately 40,000 of NSW' tests each day during July and August.

With the Delta outbreak surging in NSW and Victoria, Healius noted that more tests and a greater processing capacity would be required.

Snapshot of the Healius share price

Shares in Healius have had a stellar year thus far.

Despite yesterday's sell-off, shares in the healthcare company remain more than 31% higher since the start of 2021.

At the time of writing, the Healius share price is nudging its intra-day high of $4.93 to be more than 5% higher for the day.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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