OPMEDIC's Q3 profits jump, as revenues increase 58%
OPMEDIC Group (TSE:OMG) announced Friday a 202% hike in its net earnings for the third quarter, beating analysts' estimates and prompting the company's shares to rise.
For the three months ending May 31, the fertility-focused health care company posted $1.82 million, or $0.11 per share, compared to $0.6 million, or $0.04 per share, in the year-ago period.
As analysts had expected earnings of $0.09 per share, OPMEDIC's stock on the Toronto Stock Exchange rose 5.57% to trade at $4.74 per share as of 1:54 pm EDT.
OPMEDIC's revenues for the quarter also beat Street expectations, up 58% to $6.2 million. Fertility activities contributed $2.33 million to revenues, largely due to the new no-cost program under the Quebec Health Insurance Plan, the company said.
However, sales from its pre-natal screening segment was down $133,000 in the quarter, due to strong competition from both the public and private sector.
The company, which also offers diagnostic procedures through its PROCREA Cliniques division, and sperm banking services, through its PROCREA Cryopreservation Centre subsidiary, reported gross margin of 64%, compared to 57% a year earlier.
OPMEDIC said that, because of strong growth in its activities, the company was able to realize economies of scale.
The Laval, Quebec-based company also said it will pay a dividend of $0.025 to shareholders at the end of July.
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