Summary

  • Fisher & Paykel shares have given a return of 23.4% in 6 months and last traded at $34.90 on 8 October, up by 3.90%.
  • Hospital hardware sales grew by 390%, hospital consumables revenue rose by 48% and overall Hospital product group revenue increased by 91% during Apr-Jul 2020.
  • The Company expects operating revenue of $1.61 billion and NPAT of $365 million to $385 million for 2021.
  • FPH has started with the planning of its 3rd manufacturing facility in Mexico, which is to be authorised within the next 2 years.

Healthcare companies have witnessed increased investors’ interest, as they persistently try to discover a vaccine and control the spread of coronavirus. Healthcare stocks can prove to be a sound investment amid these challenging times of coronavirus, as a prospective remedy to cure the virus can result in enormous gains for the stock.

Let’s have a look at the performance of Fisher & Paykel healthcare shares.

ALSO READ: Healthcare Sector Supported Gain in S&P/NZX50

Fisher & Paykel share price ended the trading session at $34.90 on 8 October, up 3.90% from the previous close. In the past one month, FPH stock has given a return of 3.25%, while it has increased by 23.32% in the past 6 months.

On 9 October, Fisher &Paykel share price was at $34.55, marginally up by 0.32%.

Fisher & Paykel Healthcare Corporation Ltd (NZX:FPH) is a prominent designer, manufacturer and seller of products and systems utilised in chronic respiratory care, surgery and treatment of sleep apnea.

 

Key Highlights

Fisher & Paykel has witnessed robust demand for its hospital respiratory care products for the first 4 months to the end of July 2020 amid COVID-19.

Last month, Fisher & Paykel provided a trading update for the initial four months of FY21.

Some of the highlights of FY21 trading update includes of the following:

  • During the four-month period, hospital hardware sales have witnessed a surge, with 390% constant currency revenue growth over the first four months of FY21 compared to pcp
  • Hospital consumables revenue and overall hospital product group revenue have grown by 48% and 91% on pcp, respectively from April-July 2020
  • International sales of both invasive ventilation and optiflow consumables in July have reverted to levels seen in April
  • Revenue has been impacted by the magnitude of COVID-19 spread in a particular region, with above 50% of the Company’s Airvo hardware sales occurring outside North America and Europe 
  • Homecare revenue rose by 5% in July end, in constant currency terms, compared to pcp

The Company also intends to launch its third manufacturing facility in Mexico, which is to be authorised within next 2 years. The healthcare firm is continuing to increase its manufacturing capacity to make sure that a further rise in the supply of its respiratory products is accessible when required.

FY21 Outlook 

Fisher & Paykel also updated its previous assumptions (announced in June) due to substantial uncertainty arising from COVID-19. 

The Company expects global hospitalisations requiring respiratory support to return to normal by the end of 2020. It has also maintained an expectation of lower OSA diagnosis rate.

ALSO READ: Is Fisher & Paykel Healthcare Share Price Still a Buy Post Raising its Guidance

The full-year operating revenue for the financial year of 2021 is expected to be about $1.61 billion, and NPAT will be nearly $365 million to $385 million.

 (NOTE: Currency is reported in NZ Dollar unless stated otherwise)

 

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