Fisher & Paykel Healthcare share price on watch after guidance upgrade

The Fisher & Paykel Healthcare Corp Ltd (ASX:FPH) share price could be on the rise today after it upgraded its guidance for the full year…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch today after it provided an update on its guidance for FY 2019.

What did Fisher & Paykel Healthcare announce?

This month there have been countless companies including Cochlear Limited (ASX: COH) and Flight Centre Travel Group Ltd (ASX: FLT) warning about the negative impacts the coronavirus outbreak is having on their businesses.

But one company that has experienced a surge in demand following the devastating outbreak of this virus is Fisher & Paykel Healthcare.

This morning it revealed that it has experienced better-than-expected sales in its Hospital product business following an increase in demand from China following the coronavirus outbreak.

Combined with higher than expected Homecare sales, this has led to the company upgrading its revenue and earnings guidance for the full year.

Guidance upgrade.

Management previously expected operating revenue to be approximately NZ$1.19 billion and net profit after tax to be approximately NZ$255 million to NZ$265 million for the 12 months ending March 31.

But this has now been lifted to revenue of approximately NZ$1.2 billion and net profit after tax in the range of approximately NZ$260 million to NZ$270 million.

Fisher & Paykel Healthcare's Managing Director and CEO, Lewis Gradon, explained: "We've seen better-than-expected sales in our Homecare product group combined with continued strong growth in our Hospital product group. This includes an increase in demand from China related to the COVID-19 coronavirus outbreak."

In addition to this, Mr Gradon advised that the company's supply chain should not be impacted greatly by the coronavirus as it does not have a manufacturing facility in China. And while some of its suppliers of raw materials are based in China, it doesn't expect any meaningful disruption.

Mr Gradon said: "At this stage, we do not anticipate any significant impact on supply to our existing customers. We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period."

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »