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Fisher & Paykel Healthcare share price on watch after guidance upgrade

ASX share price broker upgrade represented by upgrade button on computer keyboard
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The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch on the S&P/ASX 200 Index (ASX: XJO) on Tuesday after providing an update on its guidance for FY 2019.

What did Fisher & Paykel Healthcare announce?

This morning Fisher & Paykel Healthcare announced that it has further updated its revenue and earnings guidance for the financial year ended March 31.

The company was previously targeting operating revenue of approximately NZ$1.2 billion and net profit after tax in the range of NZ$260 million to NZ$270 million. This was based on a NZ:US exchange rate of 64 NZ cents.

However, since its last update, the New Zealand dollar has weakened considerably against most currencies.

Assuming a NZ:US exchange rate of approximately 61 cents and a NZ:EU exchange rate of approximately 55 cents for the remainder of the financial year, management expects full year operating revenue to be approximately $1.24 billion and net profit after tax to be in the range of NZ$275 million to NZ$280 million.

Strong demand and favourable currency movements.

Management advised that its positive performance in the latter part of the financial year has been driven by strong demand and favourable currency movements.

Managing Director and CEO Lewis Gradon explained: “Our respiratory humidifiers and consumables are directly involved in treating patients with coronavirus. We have seen an increase in demand globally and have ramped up our manufacturing output. At the same time, we have benefited from stronger sales in our Homecare product group and a weakening of the NZ dollar.”

“Our highest priorities are the safety and welfare of our people and the patients who use our products. We are very appreciative of the support that we have received from our suppliers and from government agencies globally during this challenging time. I also want to express my deep gratitude to our employees, who are working tirelessly to manufacture our products, support operations and supply and train end users. I know our team is doing everything we can to meet the needs of our customers and the patients who use our products,” added Mr Gradon.

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