Daily ShareChat: Fisher & Paykel Healthcare

By Jenny Ruth

Monday 25th May 2009

Fisher & Paykel Healthcare is likely to report a 71% rise in annual net earnings to $60 million on Tuesday, close to the company's guidance provided when it reported its first-half results, says Guy Hallwright at Forsyth Barr.

That guidance was based on the New Zealand dollar averaging 55 US cents through the second half and it ended up averaging slightly above that level.

He expects revenue from the company's acute and respiratory products will be in line with guidance of slightly below 15% in US dollar terms.

Revenue from its obstructive sleep apnea (OSA) products, also expected to be about 15%, could disappoint slightly because "lower-level OSA treatment may have a discretionary element in recessionary times," Hallwright says.

The company "continues to make steady progress into non-ICU respiratory therapy, laparoscopic insufflation and new masks and auto-sensing flow generators in OSA."

Hallwright says Fisher & Paykel Healthcare's growth outlook is driven by continued product innovation and strong growth in the global OSA market as well as increasing consumables (such as masks) sales. Expansion outside intensive care in respiratory humidification could potentially double or triple the company's addressable market, he says.

While the company's earnings have been severely impacted by the strong New Zealand dollar in recent years, "we believe we are finally seeing a sustained fall."

BROKER CALL: Forsyth Barr rate Fisher & Paykel Healthcare (NZX: FPH ) as BUY.

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