The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price looks set to start the week on a high.
This morning the sleep treatment focused medical device company provided a positive market update and upgraded its guidance for the 12 months ending March 31.
At the time of writing the company’s NZ listed shares are up almost 4% in early trade.
What did Fisher & Paykel Healthcare announce?
This morning Fisher & Paykel Healthcare announced an upgrade to both its revenue and earnings guidance following receipt of regulatory clearance for its F&P Vitera mask in the United States.
The Vitera device is the company’s new full face mask used in the treatment of obstructive sleep apnoea (OSA).
Previously, the company was expecting to report operating revenue of approximately NZ$1.17 billion and net profit after tax in the range of approximately NZ$245 million to NZ$255 million.
But following this regulatory clearance, and assuming a NZ:US exchange rate of approximately 63 NZ cents, the company now expects full year operating revenue to be approximately NZ$1.19 billion and net profit after tax to be in the range of approximately NZ$255 million to NZ$265 million.
The company’s managing director and CEO, Lewis Gradon, appeared very positive on the launch of the Vitera mask in the United States after a strong start in other markets.
He said: “We have had an ongoing strong start to the year in our Hospital product group and our new OSA mask, Vitera, has been well received in Australia, Canada, New Zealand and Europe. Clearance of Vitera for sale in the US this month is sooner than we had previously guided and this has been a meaningful contributor to the increase in our guidance.”
At this stage, management advised that there are no changes to the revenue and earnings guidance previously provided for the first half of the 2020 financial year.
Fellow sleep treatment company ResMed Inc. (ASX: RMD) will also be one to watch this month. It is scheduled to release its first quarter update next week.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.