Australia's Estia Health to miss expectations for FY22 results -Jefferies

Estia Health

10/05/2022 24:17

** Analysts at Jefferies say lower and slower gains in
occupancy post increased outbreaks in Estia Health's  EHE.AX 
aged care facilities to continue
    ** Jefferies cuts PT to A$2.1 from A$2.3, maintains "hold"
rating 
    ** Jefferies sees aged-care operator's average occupancy of
91.7% for 10 months to 30 April 2022 vs 92.6% in 1HFY22
    ** Jefferies sees EHE's FY22 earnings likely to be lower
than market expectations as grant payments from the government
likely delayed until FY23
    ** Occupancy is critical for aged care profitability and is
expected to remain under pressure as COVID-19 infection
continues to grow in Australia - Jefferies 
    ** Brokerage sees FY22 net loss of A$27.5 mln($19.12 mln)vs.
previous forecast of A$18.9 mln ; cuts FY22 EBIT outlook by
55.5% to A$9.7 mln 
    ** Jefferies says EHE will be impacted also by gradual
rollout of new regulation in response to Aged Care Royal
Commission, increasing acuity of patients in aged care among
others
    ** Two of five analysts rate the stock "buy" or higher,
three "hold"; their median PT is A$2.55– Refinitiv Eikon data 
    ** EHE is down 5.7% this year, as of last close 
    
($1 = 1.4382 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))