Category: Stock Market

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could be on the move today after the release of a record full year result.

How did Fisher & Paykel Healthcare perform in FY 2020?

For the 12 months ended 31 March 2020, Fisher & Paykel Healthcare delivered operating revenue of NZ$1.26 billion. This was an 18% increase on the prior corresponding period or a 14% increase in constant currency.

On the bottom line, the medical device company reported a 37% jump in net profit after tax to NZ$287.3 million. This was positively impacted by tax changes including research and development tax credit and building tax depreciation. Excluding these and favourable currency movements, net profit after tax would have been up 23% year on year.

Both its operating revenue and profit after tax came in ahead of its guidance. Management had guided to operating revenue of NZ$1.24 billion and net profit after tax in the range of NZ$275 million to NZ$280 million.

What were the drivers of its growth?

The key drivers of its growth were increasing use of its Optiflow nasal high flow therapy, demand for products to treat COVID-19 patients, and strong hospital hardware sales throughout the course of the year.

Hospital product revenue increased 25% to NZ$801.3 million and Homecare product revenue lifted 9% to US$457 million.

The company’s Managing Director and CEO, Lewis Gradon, commented: “The 2020 financial year was already on track to deliver strong growth before the coronavirus impacted sales. Beginning in January, the demand for our respiratory humidifiers accelerated in a way that has been unprecedented.”

“With new processes, new procedures and new ways of working safely, we managed to double and in some instances triple, output for some of our hospital hardware products over just a few months at the end of the year. I’m incredibly proud of our people and their unyielding commitment to doing the right thing for patients,” he added.

FY 2021 outlook.

Mr Gradon warned that there was a lot of uncertainty for FY 2021 because of the pandemic.

He explained: “We cannot predict the scope, duration or impact of COVID-19 and its effects on our operations and financial results. In the midst of this uncertainty, we will continue doing what we are known for – expanding our range of innovative products with patients at the centre.”

Nevertheless, the company has started FY 2021 very strongly, particularly in respect to its Hospital product sales.

During the first three months of FY 2021, Hospital product sales have continued to accelerate, with hardware growth of over 300%. Hospital consumables are also up over 33% compared to the prior corresponding period.

Things aren’t quite as positive for its Homecare products, which are seeing evidence of both a lower obstructive sleep apnoea (OSA) diagnosis rate and mask resupply levels returning to normal levels. Homecare product revenue is up in the region of 9% over the first three months.

Looking ahead, management expects FY 2021 operating revenue to be approximately NZ$1.48 billion and net profit after tax to be in the range of NZ$325 million to NZ$340 million. This will be an increase of 17.5% and 13.1% to 18.3%, respectively.

This guidance is based on global hospitalisations due to COVID-19 peaking during the first quarter of this financial year, and hospitalisations for respiratory-related illnesses and OSA diagnostic activity steadily returning to normal by the end of the first half.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian share market was on form on Friday and raced notably higher.

While the majority of shares on the market climbed higher, some stood out by storming to new highs.

Here’s why these ASX shares are flying high right now:

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 share price jumped to a multi-year high of $1.01 at the end of last week. Investors have been buying the medical imaging data management solutions provider’s shares this month following the announcement of a major acquisition. Earlier this month Mach7 announced the acquisition of leading provider of an enterprise image viewing technology, Client Outlook. This acquisition has expanded its offering and increased its total addressable market from US$0.75 billion to US$2.75 billion. This is materially more than the revenue of $9.1 million it recorded during the first half. 

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price hit a new record high of $1.68 last week. When the meal kit delivery company’s shares hit that level, it meant they were up a remarkable 500% year to date. Investors have been buying Marley Spoon’s shares after it reported a surge in demand for its meal kits. This led to the company delivering revenue of 42.8 million euros in the first quarter, up 46% on the prior corresponding period. As a result of this stronger than expected growth, the company revealed that its path to profitability is accelerating. Management is expecting to achieve positive operating EBITDA the second quarter.

ResMed Inc. (ASX: RMD)

The ResMed share price charged to a record high of $27.28 on Friday. The medical device company’s shares have been very strong performers this year thanks to the robust demand it is experiencing for its obstructive sleep apnoea solutions and ventilators. The latter is being driven by the pandemic. And given how case numbers continue to shoot higher in the United States, investors appear to be betting on ResMed having a particularly strong fourth quarter.

More reading

• 3 ASX shares to own for the next 10 years
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why ResMed and these ASX shares have just hit new highs appeared first on Motley Fool Australia.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index jumped 1.5% to 5,904.1 points.

Will the market be able to build on this on Monday? Here are five things to watch

ASX 200 set to fall heavily.

The ASX 200 looks set to fall heavily on Monday after a selloff on Wall Street on Friday. According to the latest SPI futures, the benchmark index is expected to open the week 91 points or 1.55% lower. On Wall Street the Dow Jones fell 2.8%, the S&P 500 dropped 2.4%, and the Nasdaq index tumbled 2.6%. A spike in coronavirus cases weighed on investor sentiment.

Oil prices edge lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.6% to US$38.49 a barrel and the Brent crude oil price edged 0.1% lower to US$41.02 a barrel. Concerns over the spike in coronavirus cases weighed on prices.

Gold price jumps.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive day after the gold price jumped higher. According to CNBC, the spot gold price rose 0.8% higher to US$1,784.80 an ounce. Demand for safe haven assets rose after equities tumbled.

Fisher & Paykel Healthcare results.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch today when it releases its full year results. In March the medical device company revealed that it expects full year operating revenue to be approximately NZ$1.24 billion. On the bottom line, it has forecast net profit after tax in the range of NZ$275 million to NZ$280 million. Investors will no doubt be interested to hear if demand for ventilators has remained strong since the end of its financial year.

Shares going ex-dividend.

A number of popular ASX 200 shares are going ex-dividend this morning and could trade lower. These include the likes of BWP Trust (ASX: BWP), Charter Hall Group (ASX: CHC), DEXUS Property Group (ASX: DXS), Goodman Group (ASX: GMG), and Mirvac Group (ASX: MGR).

More reading

• Fisher & Paykel Healthcare share price on watch after COVID-19 drives record profit result
• Could these ASX 100 shares help you retire early?
• 3 fantastic ASX dividend shares to buy next week
• 3 ASX share price trends to watch next week
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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