Sharechat Logo

F and P Healthcare lifts guidance as sales grow, margins widen; shares rally

Wednesday 20th February 2013

Text too small?

Fisher & Paykel Healthcare, which makes breathing masks and respirators, lifted its full-year guidance a second time as demand for new breathing masks helps speed sales and margins widen. The shares jumped 6.8 percent on the news.

Net profit would rise be about $75 million in the year ending March 31, up 17 percent from a year earlier, the Auckland-based company said in a statement. That's up from $69 million-to-$72 million range given in November and the $65 million-to-$69 million estimate in August.

Sales growth during the second half has been very encouraging, particularly for our respiratory consumables and recently released Eson and Pilairo masks," said chief executive Michael Daniell. "Operating margins has also continued to improve as a result of new products, operating efficiency gains and manufacturing at our Mexico facility."

The company says revenue growth accelerated to 14 percent in constant currency terms in the second half from 8 percent in the first half.

The shares rose 16 cents to $2.50, having fallen about 5 percent this year. The stock is rated 'outperform' based on the consensus of seven analysts polled by Reuters, with a price target of $2.60. It trades at a price-to-earnings ratio of about 18.

The company also announced the introduction of a new full-face mask, the F&P Simplus, for use in treatment of obstructive sleep apnea. It will initially be sold in New Zealand and Australia, before being rolled out in Canada and Europe, followed by the US market once it receives FDA clearance, it said.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rally may limit profit gains for Fisher and Paykel Healthcare, brokerage says
FISHER & PAYKEL HEALTHCARE ANNOUNCES NEW NASAL PILLOWS MASK AT INVESTOR DAY
Shares in Fisher and Paykel Healthcare third-best performer on NZX 50 after raising earnings forecast
Fisher and Paykel Healthcare raises 2014 earnings forecast on higher sales, margins
F and P Healthcare shares jump to highest in more than 2 years on profit outlook
F and P Healthcare beats 2013 guidance, forecasts boost in 2014 profit; shares gain to 2 1/2 year high
F and P Healthcare shares rise to two-year high as First NZ raises rating on better outlook
Fisher & Paykel Healthcare
F&P Healthcare 1H profit rises 18%, on record sales, wider margins
Fisher & Paykel Healthcare