Fisher & Paykel Healthcare Revises Earnings Guidance
In the last week of February, Fisher and Paykel Healthcare announced that its Investors Day, originally scheduled to take place on 03rd March 2020, has been postponed. The Investor Day was supposed to provide investors with the opportunity to meet with the senior management of the company while attending presentations surrounding the company’s growth opportunities and products. Additionally, stakeholders will no longer be allowed to tour the company’s research & development facilities as the firm channels its attention to responding to the coronavirus outbreak.
More specifically, in a time where investors engage in coronavirus-induced sell-off, the New Zealand-based manufacturer of respiratory devices, has managed to emerge relatively unscathed. The stock has been extremely defensive and has failed to succumb to the 20 per cent decline the index has presented. This is mainly due to the optimism that respiratory products would stand to benefit from the outbreak.
More notably, the company’s Nasal High Flow therapy also presents tremendous potential from heightened respiratory conditions. Studies surrounding the clinical course and outcomes of critically ill patients with SARS-CoV-2 pneumonia in Wuhan concluded with an interesting finding. The result found that within its observational parameters, close to 65 per cent of severe COVID-19 cases in the Hubei province required high nasal flow therapy.
While the firm does not own any manufacturing facility in China, several suppliers of its raw materials are, in fact, based in China. Thus, Fisher & Paykel Healthcare believes that its supply to existing customers will not be affected. Rather, due to the outbreak of the virus, the firm has been receiving a spike in demand from China. Meanwhile, Fisher & Paykel Healthcare has expressed its gratitude towards its staff for working extra-long hours to ensure products are assembled and shipped quickly in meeting the training needs in Wuhan.
Fisher & Paykel Healthcare has also updated its revenue and earnings guidance for the financial year ended 31 March 2020. The full-year guidance previously released in November stipulated that operating revenue is expected to sit at $1.19 billion while net profit after tax should fall between the range of $255 to $265 million. The positive outlook was built on the assumptions that sales in the homecare product group will increase alongside the robust growth witnessed within the hospital product sector.
Despite the outbreak of the virus, the company has continued to launch its new Evora compact nasal mask to treat obstructive sleep apnea. The all-new F&P Evora boasts a compact nasal mask that sits comfortably under an individual’s nose. Additionally, the CapFit headgear is crafted to be worn like a baseball cap in a simple and seamless movement- one that is familiar among its patients.
By Caroline Wong
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