In major news on Australian stocks, shares of Fisher & Paykel Healthcare Limited (AU:FPH) surged 6.5% after the company upgraded its guidance on revenue and earnings for FY24. The company now expects its operating revenue to be around NZ$1.73 billion, up from the earlier guidance of NZ$1.7 billion. Similarly, the net profit after tax outlook has been increased to be in the range of NZ$260-NZ$265 million from the range of NZ$250-NZ$260 million.
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Headquartered in New Zealand, Fisher & Paykel Healthcare is a medical device company that specializes in manufacturing and marketing products and systems for respiratory care.
FPH’s Upbeat Guidance
Fisher & Paykel’s guidance upgrade was primarily driven by currency movements, resulting in an increase from the earlier guidance provided in November. The previous figures were calculated based on an NZ:US exchange rate of NZ$0.58, whereas the current exchange rate for the rest of the fiscal year stands at NZ$0.61.
Moreover, the company has witnessed a sustained, robust demand for hospital products throughout the second half, which aligns with the higher end of its projections since November.
Additionally, FPH disclosed its intention to conduct a valuation of its properties situated in East Tāmaki and Karaka, Auckland, and in Tijuana, Mexico, as of March 31, 2024. It is anticipating a potential decrease in property value attributed to higher interest rates and zoning status changes. Any resulting adjustment will be considered a non-cash accounting modification affecting the net profit for the year.
It’s noteworthy that the current guidance provided by the company does not incorporate this potential adjustment.
FPH Stock Price
FPH shares are still lagging their COVID-19 peak, as the pandemic-led demand has now diminished. However, the profit outlook upgrade signals optimism for the stock. Year-to-date, the Fisher & Paykel share price has gained 9% in trading.
