Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has experienced a significant boost in its share price following a recent update on FY25 profit guidance. On Friday, shares surged 9%, reaching $32.00 each, reflecting positive investor sentiment towards the latest news.
The company has enjoyed a strong performance throughout the year, with its stock rising 46.6% to date. This recent price movement continues the upward trend observed in Fisher & Paykel's shares.
Revised H1 Guidance Signals Strong Performance
Fisher & Paykel has updated its projections for the first half of FY25, now anticipating revenue between $940 million and $950 million. This represents an 18% increase compared to the first half of the previous year.
Net profit is expected to rise by 44% to $160 million for H1 FY25, aligning with the upper end of estimates. This follows a 10% increase in sales during FY24 and a 6% growth in net profit for that year. The company attributes this growth to several factors, including successful new product launches and a higher-than-expected hospital census in both hemispheres.
CEO Lewis Gradon emphasized the company's progress in improving gross margins and noted the positive contributions from ongoing changes in clinical practices and new product introductions. The company has observed a relatively high hospital census, with Northern Hemisphere seasonal hospitalizations extending into the new financial year and hospitals returning to more normalized staffing and capacity.
Full-Year Guidance Update
Fisher & Paykel has also revised its full-year guidance. Revenue expectations remain unchanged, with sales projected between $1.9 billion and $2.0 billion. However, profit forecasts have been increased by approximately $10 million, now estimated between $320 million and $370 million.
The company's optimistic outlook for the remainder of the financial year is supported by continued changes in clinical practice and the success of new products. The unchanged revenue guidance reflects the anticipated variability in Northern Hemisphere seasonal hospitalization rates, which typically affect the latter part of the fiscal year.
Fisher & Paykel’s hospital products are recognized as market leaders, with positive feedback on its sleep apnea masks. Recent updates have contributed to a 54% increase in share price over the past 12 months and a 46.6% rise year to date.
The recent guidance updates from Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) highlight a strong performance trajectory and continued growth potential. The company's share price reflects a positive market response, buoyed by favorable forecasts and successful product innovations.