What: Respiratory medical device manufacturer Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has today delivered record profits of NZ$97 million. The impressive set of full-year numbers show that revenues jumped 13% on a constant currency basis and profits surged 46% on a constant currency basis and 26% on an actual basis.
So what: The group results, included revenue growth of 15% from its Obstructive Sleep Apnea division which competes with market leader ResMed Inc. (CHESS) (ASX: RMD). In comparison ResMed recently announced revenue growth of just 3% for the March quarter and 3% for the nine months ending 31 March 2014, suggesting Fisher & Paykel is making headway and possibly market share.
Now what: The board has declared a final dividend of NZ 7 cents per share (cps), bringing the full-year dividend to NZ 12.4 cps. Management has also provided guidance for 2015 that it expects profit growth of approximately 40% in constant currency terms. Unfortunately for shareholders this is not expected to translate into profit growth in 2015 due to a strong foreign currency headwind.
The market has provided a muted response to the results, no doubt due to the less than enthusiastic outlook for actual earnings with the shares gaining just 1.3% by lunchtime. The stock is trading close to its 52-week high and on a hefty price-to-earnings multiple of 22 which would appear to be a pretty full valuation.
