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Daily ShareChat: Fisher & Paykel Appliances

By Jenny Ruth

Monday 3rd May 2010

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 Jenny Ruth

Stronger than expected results from its competitors as a result of improved demand in America means there are upside risks to analysts' forecasts of Fisher & Paykel Appliances Holdings' earnings for the year ending March 2011, says Goldman Sachs JB Were analyst Adrian Allbon.

He is forecasting a $42.1 million adjusted net profit for that year compared with the $41.3 million consensus forecast by all analysts covering the stock.

North American sales contributed 30% of Fisher & Paykel's 2009 earnings, he says.

March quarter demand for appliances in North America was up 6% compared with a year earlier, the second consecutive quarterly rise in demand after 13 quarters of decline.

"The other feature was the improvement through the quarter with March up 9% year-on-year vs up 5% in February and January up 1%," Allbon says.

Whirlpool's first quarter earnings-per-share of US$2.13 compared with Goldman Sachs' US$1.39 forecast and the US$1.33 consensus forecast. Electrolux also materially out-performed with March quarter earnings of 911 million Swedish krona compared with the 658 million krona forecast.

"Unsurprisingly, both peers highlighted rising raw material prices as a concern. However, both expect to offset this headwind with operating leverage from recovering volumes," Allbon says.


BROKER CALL: buy (from hold).




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