Fisher & Paykel shares rise after FY26 guidance upgrade
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More news: Fisher & Paykel was one of the top performers on the ASX 200 in morning trade after upgrading its net profit and operating revenue guidance for fiscal 2026.
Shares were up 4.9% to $33.40 at 11:40am AEDT.
Canaccord Genuity analysts said Fisher & Paykel's update "beat expectations solidly".
What they said: "Undeniably, there are a range of new drivers coming into contention as [Fisher & Paykel's] high flow nasal cannula (HFNC) modality evolves across respiratory indications and care settings," the analysts said.
"Hospital sales delivered beats across all categories. Homecare lagged our estimates fractionally, but is still seeing structural tailwinds from sleep apnea industry growth.
"[Gross margin] expansion was perhaps the key highlight for us, shrugging off external pressures to expand another 60bps in constant currencies to 63%."
Fisher & Paykel hikes FY26 guidance as first-half profit surges 39%
The news: Fisher & Paykel has reported a 39% jump in net profit after tax for the first-half of FY26 and upgraded its full-year guidance.
The numbers: The healthcare equipment maker posted first-half net profit after tax of NZD213 million ($185 million), a 39% rise year on year and outstripping guidance of 31% growth.
Total operating revenue climbed 14% year on year to NZD1.09 billion. Gross margin rose to 63%, an increase of 110 basis points compared to the prior corresponding period.
The group declared an interim dividend of 19 cents per share, up from 18.5 cents per share a year earlier.
Fisher & Paykel upgraded its full-year guidance, with net profit after tax expected to be NZD410-460 million, compared with the previous range of NZD390-440 million.
It now expects operating revenue for FY26 to be NZD2.17-2.27 billion, up from earlier guidance of NZD2.15-2.25 billion.
The group's revised outlook continues to include an estimated 75-basis point impact to gross margin due to US tariffs.
The context: Chief executive Lewis Gradon said the company benefitted from new products and a range of efficiency improvements across the business during the first-half period.
He noted that Fisher & Paykel's hospital consumables portfolio experienced "broad-based strength" during a period of lower seasonal respiratory hospitalisations. In the group's homecare division, a new range of masks for treating obstructive sleep apnea also performed well, Gradon said.
What they said: "Our second-half hospital consumables growth can be influenced by year-on-year variations in the Northern Hemisphere winter respiratory season, and we don't have any additional insights into that impact at present," said Gradon.
"Available data indicates that last winter was a historically strong season, and so a similar season this year would be pushing our result towards the top end of guidance."
The source: ASX
