The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has hit a 52-week high of $17.71 in Tuesday trade. Investors have bid up the company's share price this week following the release of 2 bullish announcements yesterday.
The first announcement revealed that the company has received regulatory clearance in the United States (US) to sell its new full-face mask. The second announcement was an upgrade to earnings guidance for FY20.
Vitera regulatory clearance
Fisher & Paykel Healthcare has received regulatory clearance in the United States to sell its F&P 'Vitera' mask, which is used to treat obstructive sleep apnea. The new mask redefines mask performance via a combination of unique technologies that provide high levels of stability and durability.
Vitera is already available for sale in Australia, Canada, New Zealand and Europe. The new mask is also expected to be available for sale in other markets once regulatory approval is received.
In the United States, the company received regulatory clearance to sell Vitera faster than the timeframe it had previously guided for. As a result, this has become a meaningful contributor to raised guidance for FY20.
FY20 guidance lifted
For the financial year ending 31 March 2020, Fisher & Paykel Healthcare expects operating revenue to be around $1.19 billion and net profit after tax to fall in the range of $255 million to $265 million. The guidance assumes a NZD/USD exchange rate of around 63 cents for the remaining part of the financial year.
The company had previously guided for FY20 operating revenue to be around $1.17 billion and net profit after tax to be between $245 million to $255 million. That guidance was based on an assumed NZD/USD exchange rate of 64 cents.
Management also noted that there are no changes to revenue and earnings guidance for the first half of FY20. The full year guidance incorporates a further weakening of the NZ dollar and an adjustment to the projected research and development tax credit.
Foolish takeaway
Fisher & Paykel Healthcare shares have now risen 42% in 2019. The company remains one of the best healthcare stocks on the Australian market alongside CSL Limited (ASX:CSL), Cochlear Limited (ASX: COH) and major competitor ResMed Inc. (ASX: RMD).
