F&P Healthcare rockets to record high following upgrade

Shares in medical equipment maker Fisher and Paykel Healthcare rocketed to a record high today after it upgraded guidance on its profit yesterday.

Shares in F&P Healthcare jumped 17c yesterday and leapt another 23c to a record high of $3.80 today.

The company, which mainly sells into the United States market told shareholders at the annual meeting in Auckland yesterday that it expected revenue to rise 25 per cent in US dollar terms.

Chief executive Michael Daniell said expanding market share and increased product groups would likely lead to first half earnings of $132-135 million.

"The 2006 financial year has started very well, with pleasing revenue growth in each of our product groups," Mr Daniell said.

Operating margins are forecast to remain in the mid-30 per cent range, while the company's hedging policy should shield it from the New Zealand dollar's recent strength against the US dollar.

Forsyth Barr Frater Williams broker David Price said his firm had increased its valuation on the stock by 24c as a result of the upgrade.

He noted that F&P rival, Resmed, had also produced a good result yesterday and had risen 10 per cent.

F&P Healthcare makes products to treat sleep disorders including obstructive sleep apnea, respiratory humidification, and neonatal and warming products.

It posted a net profit of $61.4 million in the year ended March 31, up 12 per cent .

F&P Healthcare chairman Gary Paykel told shareholders that if he could sum up the year in one word it would be "expansion".

The company moved into eight new categories of patient care, and expanded its presence in international and local markets , investing in manufacturing facilities and clinical partnerships.

" After another year of very positive performance, we expect the 2006 financial year to deliver more strong underlying revenue growth and sound margins," Mr Paykel said.

US company Resmed, a rival maker of sleep disorder devices, yesterday announced a fall of nearly 2 per cent in quarterly net profit due to increased expenses.

Resmed said net income for the fiscal fourth quarter ended June 30 fell to US$15.6 million ($22.67 million), or 43 cents per share, from US$15.9 million, or 45 cents per share, a year ago.

Excluding special items such as restructuring and acquisition related costs, the company earned US$21.7 million, or 60 cents per share. Analysts on average were expecting US54 cents per share.

NZPA