How did the Polynovo share price respond last time the company reported?

The Polynovo Ltd (ASX: PNV) share price is having a pretty pleasing day of trade this Thursday. At present, Polynovo shares are up an encouraging 2% at $2.04 each.

That compares well against the S&P/ASX 200 Index (ASX: XJO), which is also in the green, but by 0.76% at about 7,051 points. So a market-beating kind of day for Polynovo shares.

But today is just a warm-up act. Because all eyes will be on this ASX healthcare company tomorrow when it reports its full-year earnings for the 2022 financial year.

Now, we obviously can’t predict what is going to happen to Polynovo shares tomorrow from where we stand today. They could go up, go down, or stay flat. But what we can do is take a look at what happened to the Polynovo share price the last time this company reported earnings.

What happened to the Polynovo share price last earnings season?

So Polynovo’s last reporting date with ASX investors was back on 25 February of this year. That was when the company dropped its half-year results for FY2022, which covered the six months to 31 December 2021.

As we covered at the time, the company reported a 41.9% surge in revenue to $18.15 million. That led to Polynovo announcing an underlying profit after tax of $1.618 million. That was up from the previous year’s loss of $3.57 million.

However, the company still reported a net loss after tax of $1.7 million when non-cash items were excluded.

So how did Polynovo shares react to these earnings? Well, it was an interesting tale.

Upon the release of this report on Friday 25 February, the Polynovo share price ended the trading day with a loss of 3.77%. The following Monday saw the company lose another 1.96%, but the next day the company gained an impressive 10%.

Now this experience in no way tells us what exactly will happen with the Polynovo share price tomorrow. If the results are above the market’s expectations, the shares will, in all likelihood, go up. If they are below expectations, the shares might fall. But it’s still an interesting insight into what can happen during earnings season.

At the current Polynovo share price, this ASX 200 healthcare share has a market capitalisation of $1.35 billion.

The post How did the Polynovo share price respond last time the company reported? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. 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 Scott Phillips.

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