The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has gone up 5% based on an increase of its guidance for its 2020 financial year.
Fisher & Paykel Healthcare Corp is a manufacturer, designer and marketer of products & systems for use in respiratory care, acute care and the treatment of obstructive sleep apnea. The company has been operating in the healthcare industry since the 60s. The healthcare business has been a separate entity since 2001 when the company split from its appliances business.
Fisher & Paykel Healthcare’s New Guidance
The company has upgraded its revenue and earnings guidance for the financial year ended 31 March 2020, after receiving regulatory clearance to sell its F&P Vitera mask in the United States.
The Vitera is the company’s new full face mask used in the treatment of obstructive sleep apnea.
The previous guidance was that operating revenue would be $1.17 billion and net profit after tax would be in a range of $245 million to $255 million.
Based on the mask release and current exchange rate, the company is expecting full year operating revenue of $1.19 million and the new net profit guidance is for a range between $255 million to $265 million.
This guidance also incorporates the refinement of the expected research & development tax credit. But, there are no changes to the revenue and earnings guidance previously provided for the first half of the 2020 financial year.
Fisher & Paykel Healthcare Corp CEO and Managing Director Lewis Gradon said:
“We have had an ongoing strong start to the year in our Hospital product group and our new OSA mask, Vitera, has been well received in Australia, Canada, New Zealand and Europe.
“Clearance of Vitera for sale in the US this month is sooner than we had previously guided and this has been a meaningful contributor to the increase in our guidance.”
Is The Fisher & Paykel Healthcare Share Price A Buy?
A higher profit is always welcome. Fisher & Paykel is one of the highest quality healthcare shares on the ASX in my opinion, along with ones like CSL Limited (ASX: CSL).
It’s certainly not priced cheaply due to its good consistent growth and lower interest rates, but it could still be worth paying up for quality.
But if you’re after growth then the shares in the free report below could be even better buy ideas.
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