F&P Healthcare shares spike higher after earnings upgrade

F&P Healthcare CEO Lewis Gradon. Photo / NZ Herald

Fisher and Paykel Healthcare's share price spiked sharply higher after the company upgraded its earnings forecasts for the current year, based on a weaker New Zealand dollar.

By late afternoon the stock was trading at $15.89, up 74c or 4.88 per cent from Tuesday's close.

Managing director and chief executive Lewis Gradon told the annual meeting that it had been a good start to the year, which ends on March 31, and that the company was on track to deliver earnings growth.

"During the first quarter, we have seen strong growth in our hospital product group, which continues to be supported by uptake in both our Optiflow nasal high-flow therapy and non-invasive ventilation products," Gradon said in notes released to the NZX.

"Our New Zealand dollar results can be influenced by exchange-rate movements, and our earnings guidance has benefited from a weakening of the New Zealand dollar," he said.

The previous full year guidance issued in May, based on a NZ/US exchange rate of 65 US cents, was for operating revenue to be about $1.15 billion and net profit to be about $240 million to $250m.

Now, assuming an exchange rate of about US$64c for the balance of the year, the company expects full year operating revenue to be $1.17b for a net profit of about $245m-$255m.

At current exchange rates, the company expects operating revenue for the first half to be $560m and for its net profit after tax to be about $120m.

F&P Healthcare makes, designs and markets products and systems for use in respiratory care.