ASX healthcare share Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has rocketed out of the blocks on Friday after the company provided an update on its FY25 profit guidance.
Shares are racing 9% higher from the open and are fetching $32.00 apiece as investors react positively to the news.
Fisher & Paykel has been on a tear this year with the stock up 46.6% in that time, so today's price action continues this uptrend.
Let's see what the company posted.
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ASX healthcare updates H1 guidance
After updating the market on its business performance so far in FY25, the ASX healthcare share revised its projections higher.
Revenue is now projected to fall between $940 million and $950 million for the first half of FY25, marking an 18% increase compared to H1 last year.
Fisher & Paykel management also expects net profits to jump by 44% in the first half to $160 million, which is at the upper end of estimates.
This comes after it grew sales by 10% in FY24, leading to a 6% growth in net profit for the year. As such, the company expects big growth this financial year.
Management said the growth was driven by several factors, including successful new product launches and a higher-than-expected hospital census in both the Northern and Southern Hemispheres.
The company has also made notable strides in improving its gross margins. CEO Lewis Gradon highlighted this progress:
The year to date has begun strongly across all products and regions. In the Hospital product group, contributions include ongoing change in clinical practice, and a good response to new product introductions.
In addition, early indications are that the year to date includes a relatively high hospital census during the period in both the Northern and Southern Hemispheres as Northern Hemisphere seasonal hospitalisations persisted into the beginning of this current financial year and hospitals have returned to more normalised staffing and capacity.
This has seen investors gobbling up the ASX healthcare share en masse today, likely positioning for this expected growth.
Positive updates for the full year, too
Fisher & Paykel has also revised its full-year guidance. The ASX healthcare share didn't change its revenue expectations – it still expects sales of $1.9 billion to $2.0 billion.
However, it raised its profit forecasts by around $10 million, now estimating the bottom line at between $320 million and $370 million.
The company expects to maintain its current business momentum, supported by continued changes in clinical practice and the success of new products. CEO Gradon expressed optimism about the year ahead:
We expect the remainder of the financial year for our Hospital product group to have similar underlying contributions from changes to clinical practice and new product introductions.
We have not changed our view on the revenue guidance range for the full year due to the additional and variable impact of Northern Hemisphere seasonal hospitalisation rates, which historically occur towards the end of our second half.
Gradon described Fisher & Paykel's hospital products as "market leaders", and said that its sleep apnea masks were getting positive reviews.
Wilson's rated the stock a buy earlier this month, while Equity Trustees has placed the ASX healthcare stock on its 'shopping list' of top-quality businesses to consider for the long term.
ASX healthcare share snapshot
Fisher & Paykel's share price has been on a tear this year. The ASX healthcare share has just updated its outlook for both the first half and full year for FY25.
Shares in the company have climbed 54% in the last 12 months and are up 46.6% year to date.
