The SILK Laser Australia Ltd (ASX: SLA) share price is soaring today following the release of the company’s trading update.
The laser clinic company’s shares are whooshing 9.5% higher at the time of writing to $2.88 apiece. However, in earlier trading, the shares hit an intraday high of $2.95. That’s a 12% jump on yesterday’s closing price of $2.63.
What did SILK Laser announce?
According to its release, SILK Laser is on track to deliver its projected EBITDA target for FY22. Ahead of analysts’ consensus, this has led the SILK Laser share price to roar during today’s session.
For the nine months ending 31 March 2022, the company achieved network cash sales of $116.6 million. This reflected a 91% increase over the prior corresponding period (pcp). It included seven months of sales from its recent acquisitions, Australian Skin Clinics and The Cosmetic Clinic in New Zealand.
In addition, like-for-like cash sales, adjusted for lost trading days due to COVID-19 lockdowns, grew to $101.6 million, up 4%.
Management noted that despite the tough macroeconomic conditions impacting the industry, the business continued to perform strongly.
Notably, a substantial proportion of the above revenue comes from injectable services (45%). This category generates higher transaction values, higher margins, and repeat purchases for SILK Laser.
The company’s franchise partner network continues to expand with three new clinics opening in 2022. It plans to open between 6 to 10 clinics over the next twelve months.
With 121 clinics operating across Australia and New Zealand, SILK Laser is forecasting FY22 EBITDA of at least $20 million.
What did management say?
SILK Laser founder and managing director Martin Perelman commented:
The foundations of the SILK business are strong, especially as we continue to expand our service mix — growing the share of the Injectables category that is especially resilient, even in a tough operating environment.
About the SILK Laser share price
Over the past 12 months, SILK Laser shares have posted a loss of 36%. They are down 32% year to date.
The share price hit an all-time low of $2.62 yesterday.
Based on today’s improved price, SILK Laser presides a market capitalisation of roughly $139.41 million.
The post Here’s why the SILK Laser share price is zipping 12% higher today appeared first on The Motley Fool Australia.
Should you invest $1,000 in SILK Laser right now?
Before you consider SILK Laser, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and SILK Laser wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Accent share price lifts following key ROI decisions
- Why is the Woolworths share price missing out on the ASX party today?
- Adore Beauty share price glows following ‘strong quarterly performance’
- AMP share price surges 11% as $699m Collimate deal confirmed
- ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/M7wA5Z8