The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could jump higher on Friday following the release of a trading update.
In New Zealand, the Fisher & Paykel Healthcare share price is currently up 6% in early trade.
How is Fisher & Paykel Healthcare performing?
Today's update reveals that Fisher & Paykel Healthcare has continued to experience strong demand for its products in FY 2021.
According to the release, operating revenue for the nine months ended 31 December 2020 was up 73% in constant currency compared to the prior corresponding period.
The main driver of this growth has been its Hospital Product segment. This includes products that are used in acute and chronic respiratory care and surgery.
Hospital Products operating revenue grew 113% over the first nine months of the previous financial year in constant currency.
Over this same period, management notes that Hospital hardware grew 446% and hospital consumables grew 54%, both in constant currency.
Growth in the company's Homecare Product segment has been a lot more subdued. This segment includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home. It competes head on with ResMed Inc (ASX: RMD) in this market.
The release explains that segment operating revenue grew 6% over the nine months to 31 December 2020 in constant currency.
Managing Director and Chief Executive Officer, Lewis Gradon, commented: "In many parts of the world, we have continued to see an influx of COVID-19 patients requiring hospitalisation for respiratory treatment."
"Given the elevated hospitalisation rates for COVID-19, our hospital hardware sales have continued to be very strong, as has the use of our hospital hardware," he added.
Outlook
When the company released its half year results, it provided investors with an idea of what it was expecting in FY 2021 based on a number of assumptions.
It guided to full year operating revenue of approximately NZ$1.72 billion and net profit after tax of approximately NZ$400 million to NZ$415 million.
This compares to FY 2020's operating revenue of NZ$1.26 billion and net profit after tax of NZ$287.3 million.
Pleasingly, the company notes that these assumptions are now outdated and the company currently expects revenue and net profit after tax to be higher than previous expectations.
However, due to significant uncertainties associated with the course of COVID-19, no formal guidance has been provided and investors will need to wait for its full year results to find out how it performs.
