F&P Healthcare stocks drops as profit forecast misses estimates
Fisher & Paykel Healthcare shares tumbled after the manufacturer of breathing masks and respirators forecast 2010 earnings that were lower than analysts had expected.
The shares declined 5.5% to $2.90, the lowest in more than a month. Earnings are forecast to rise to $75 million to $80 million this year on operating revenue of $540 million, assuming the kiwi averages about 60 U.S. cents, the company said today. That’s less than the $102.9 million estimate in a Reuters survey.
The manufacturer, which competes in the health-care products market with ResMed and Respironics, today posted a 76% jump in full-year profit as the weaker New Zealand dollar swelled the value of rising sales of respirators and breathing masks in the U.S.
“The business is going fine but there’s just a question mark on the confusing outlook,” said Stephen Walker, investment strategist at Goldman Sachs JBWere. The forecast is “short of expectations.”
Net income rose to $62.2 million, or 11.8 cents a share, from $35.3 million, or 6.7 cents a year earlier, the Auckland-based company said in a statement today. Sales jumped 28% to $458.7 million, or 10.2% in U.S. dollar terms. Profit about matched the $61.8 million estimate in a Reuters survey.
“Demand for our respiratory humidifier systems was exceptionally strong,” said chief executive Mike Daniell. “Demand continued to be robust in the second-half.”
The company plans to establish an offshore manufacturing plant this year and roll out sales and distribution centres in four countries including Japan, he said
F&P Healthcare gets about 80% of its revenue in U.S. dollars. In the 2008 business year, the currency peaked at more than 81 U.S. cents and only briefly traded below 70 cents while the currency spent the second half of the latest year at 62 cents or below. The company will pay a final dividend of 7 cents a share, unchanged from a year earlier.
Daniell said respirator sales were helped by hospital Group Purchasing Organisation orders in the U.S. and deliveries of back orders in the first half of the year.
Businesswire.co.nz
Comments from our readers
No comments yet Add your comment:
Related News
F&P Healthcare projects flat earnings Daily ShareChat: Fisher & Paykel Healthcare Daily ShareChat: Fisher and Paykel Healthcare Daily ShareChat: Fisher and Paykel Healthcare F&P Healthcare posts 15% gain in profit Daily ShareChat: Fisher & Paykel Healthcare F&P Healthcare commits to third Auckland building as part of $33M spending plan F&P Healthcare humidification products will drive earnings, Morningstar says Daily ShareChat: Fisher & Paykel Healthcare Record profit for Fisher & Paykel Healthcare - outlook strong
NZX Annoucements for FPH
|
|
Fisher & Paykel Healthcare Corporation Limited Ord Shares
Current quote:
FPH $2.98
Quotes delayed 20 minutes
Price when article published: $2.87
Previous News
Sharemarket News By Email
Stock Quote
At a Glance
| NZX 50 Index |
3092.20 |
 |
9.70 |
| S&P/ASX 200 |
4532.70 |
 |
0.00 |
| Dow Jones Industrials |
10320.10 |
 |
50.60 |
Comment & Analysis
|
“
As the world economic system strives to right itself from what has been called the Credit Crunch or the Great Recession, or any other euphemistic tag designed to understate the significance of what we face, one of the very interesting recent trends has been the increasing willingness for large establishment organisations to begin talking honestly [...]
”
Wayne Lochore More »
|
|
|
|


NZX 15 Index
NZX Announcements
|