The Tabcorp Holdings Limited (ASX: TAH) share price has continued its slide on Wednesday.

In morning trade, the wagering and media and gaming services company’s shares are down a further 7.5% to 97.5 cents.

This means the Tabcorp share price is now down 82% over the last couple of sessions.

What’s going on with the Tabcorp share price?

The weakness in the Tabcorp share price this week has been driven by the demerger of the company’s Lotteries and Keno businesses on Tuesday. These businesses have been spun off and listed separately as The Lottery Corporation Limited (ASX: TLC).

Given that this happened yesterday, investors may be wondering why its shares have continued to slide today.

This weakness appears to have been driven by investors trying to find a fair valuation for the Tabcorp business now that its more attractive Lotteries and Keno businesses have been taken away.

What is new Tabcorp worth?

According to a note out of Credit Suisse, it believes that fair value for the Tabcorp share price is notably higher than where it trades today.

The note reveals that its analysts have slapped an outperform rating and $1.25 price target on the company’s shares.

However, analysts at Macquarie Group Ltd (ASX: MQG) are feeling a little less positive. They have put a neutral rating and $1.00 price target on Tabcorp’s shares.

Macquarie prefers the spun off Lottery Corporation business and has an outperform rating and $5.00 price target on its shares. This is despite the broker acknowledging that demerged shares often underperform initially in Australia.

It commented: “When examining the behavior of stocks post the demerger implementation the child entity typically underperforms the market for the first six months. […] This has been longer and larger in more recent transactions. The short-term underperformance in the child is eventually reversed, with strong longer-term performance.”

The post Tabcorp share price slumps another 7% following demerger appeared first on The Motley Fool Australia.

More reading

• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling
• Here are the 3 most traded ASX 200 shares on Tuesday
• Here’s what you need to know about the Tabcorp demerger
• The Lottery Corporation share price debuts on the ASX boards
• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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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S&P/ASX 200 Index (ASX: XJO) tech shares are off to a poor start in early trade today.

While the ASX 200 is up 0.5% the S&P/ASX All Technology Index (ASX: XTX), which also contains some companies outside of the top 200 by market cap, is going the other way.

At the time of writing the All Tech index is down 2.1%.

Some of the heavier losses among ASX 200 tech shares are being posted by global payments giant, Block Inc (ASX: SQ2). The Block share price is down 5.9% to $108.80. This comes after its US listed shares tumbled 9% yesterday (overnight Aussie time).

Also in the red is accounting software provider Xero Limited (ASX: XRO), down 1.1%.

And WiseTech Global Ltd (ASX: WTC), which provides cloud-based software solutions for the logistics sector, is down 2.9% to $39.98 per share.

So why are tech companies coming under pressure?

What’s happening with the technology sector?

ASX 200 tech shares look to be following the lead of the Nasdaq.

The tech-heavy US index fell 2.4% yesterday, taking its year-to-date losses to 29.8%.

Growth shares the world over have come under pressure in 2022 amid rising interest rates and fears of a recession in the United States, the world’s biggest economy.

Yesterday’s hit to US tech shares was driven by a global social media provider, Snap Inc (NYSE: SNAP). Snap reported that macroeconomic conditions were deteriorating and lowered its profit forecast with its digital advertising revenue likely to come under pressure.

The Snap share price crashed 43% by market close.

Ouch.

The carnage at Snap hit most every big US tech share, with Alphabet (NASDAQ: GOOGL) – or Google if you prefer – dropping 5%.

And now ASX 200 tech shares are feeling the headwinds.

How have ASX 200 tech shares done in 2022?

With the RBA and central banks in many other nations lifting their benchmark interest rates for the first time in a decade this year, with more rate hikes flagged, growth stocks like ASX 200 tech shares have largely lost ground.

Year to date the All Tech index is down 32.8%, compared to a loss of 5.3% posted by the ASX 200.

The post What’s happening with ASX 200 tech shares today? appeared first on The Motley Fool Australia.

More reading

• Why Snap stock cratered on Tuesday
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Snapchat share price dives 30% pulling Nasdaq futures lower
• Do experts think the Xero share price is a buy?
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 Galileo Mining Ltd (ASX: GAL) share price isn’t going anywhere on Wednesday.

This comes after the mineral exploration and development company requested a trading halt before market open.

As such, the Galileo Mining share price is currently frozen at 94.5 cents apiece. It’s worth noting that the company’s shares have rocketed by 285% over the past month.

Why are Galileo Mining shares in a trading halt?

The Galileo Mining share price was placed in a trading halt this morning pending an important market announcement.

In the brief description provided, the company revealed it will release the material drill assay results from its Callisto discovery.

The trading halt is expected to be lifted on Friday 27 May or by the release of the company’s announcement – whichever comes earlier.

No doubt, investors will be keeping a close watch on Galileo Mining’s latest update. This will give a clearer understanding of what lies underground at the Callisto discovery of the Norseman Project.

More on the Galileo Mining

Based in Western Australia, Galileo Mining is an explorer and developer of nickel, palladium, copper, and cobalt resources.

The company holds tenements near Norseman with more than 26,000 tonnes of contained cobalt, and 122,000 tonnes of contained nickel.

Earlier this month, management revealed a drill hole returning significant palladium-platinum-gold-copper-nickel mineralisation at the Callisto discovery.

Galileo Mining previously noted it had $8.2 million at the end of the March quarter to fund its exploration programs.

About the Galileo Mining share price

Galileo Mining shares were on a slow and gradual decline over the past 12 months, before shooting up this month.

Positive investor sentiment after the Callisto discovery led the company’s share price to rise sharply in May, enabling the miner to post a gain of 320% in 2022.

Based on today’s price, Galileo Mining presides a market capitalisation of roughly $159 million.

The post The Galileo Mining share price has been on a tear, but now it’s halted. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Galileo Mining share price is up 13% today and 125% this week
• The Galileo Mining share price has rocketed 380% in a week. But this billionaire is still buying up big
• Why is the Galileo Mining share price jumping 42% today?
• Why did the Galileo Mining share price tumble 18% in early trading on Thursday?
• Galileo Mining share price explodes 150% on major discovery

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Snap Inc (NYSE: SNAP) plummeted on Tuesday, falling as much as 40.7%. As of 10:48 a.m. ET, the stock was still down 40.4%.

The catalyst that sent the social media company plummeting was a profit warning that set off alarm bells about the state of the economy.

So what

In a regulatory filing after the market close on Monday, Snap — the parent of Snapchat — warned that the economic picture had become much more uncertain, causing the company to rein in both its revenue and profit guidance for the second quarter.

In a statement, the company said:

Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.

Management went on to say that the company remains “excited” about the “long-term opportunity” ahead. “Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.”

Now what

Following the profit warning, analysts scrambled to adjust their models to fit the changing economic paradigm. There was a raft of outlook adjustments, as no fewer than a dozen of Wall Street’s finest lowered their price targets on Snap.

Perhaps more telling, however, was the fact that none of the analysts downgraded Snap’s stock, which is decidedly bullish. Truist analyst Youssef Squali’s take was the most upbeat, telegraphing a long-term view.

He pointed out that while the outlook is disappointing, he expects the situation to be temporary, according to The Fly. He cited the company’s strong fundamentals and the increasing adoption of its first-party data measurement by advertisers. Squali also said that the growing adoption of Snapchat products by its users, including Map and Spotlight, as well as the continuing growth of its daily active users as signs that the current situation is transitory. 

Taking a long-term view is difficult on days like today, but given the growing opportunity and underlying strength of its business, Snap investors will likely look back on today as a chance to buy shares on the cheap.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Snap stock cratered on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Snapchat share price dives 30% pulling Nasdaq futures lower

Danny Vena has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Nanosonics Ltd (ASX: NAN) share price is dropping on Wednesday.

In morning trade, the infection prevention company’s shares are down 1.5% to $3.74.

Why is the Nanosonics share price falling?

The weakness in the Nanosonics share price on Wednesday has been driven by the release of a business update.

This update was in relation to the company’s direct sales model transition in North America which was announced in February.

According to the release, the direct sales model transition is progressing well with the transfer of GE customers currently in progress and a significant number of accounts already set up by Nanosonics.

The release notes that GE has been supporting Nanosonics with the transition by communicating with all of their trophon customers about the new arrangements being implemented for the ongoing provision of trophon products.

Furthermore, the relevant GE customer data has been supplied to Nanosonics and the company has communicated with all these customers to set up direct trading accounts. A significant number of these accounts are now in place. Management expects that the transition will be completed for the majority of customers by 30 June 2022.

Also supporting the transition will be a number of former GE High Level Disinfection team members that have joined Nanosonics. These include the previous Head of the GE High Level Disinfection team, a GE operations lead who was responsible for the supply and logistics of trophon products to all GE customers, and a number of sales managers.

Trading update

During the third quarter, Nanosonics’ global installed base grew to 28,900. This is up a modest 2.6% from 28,160 units at the end of December. It could be this slowing growth that is weighing on the Nanosonics share price today.

Nevertheless, management expects its full-year revenue to be in line with current market consensus estimates.

Nanosonics’ Chief Executive Officer and President, Michael Kavanagh, commented:

The continued transition to a more direct sales channel model in North America brings many benefits to Nanosonics and its customers. Our North American team can now manage the overall growth strategy associated with new installed base, upgrade adoption and consumables usage. This deeper relationship with our North American customers together with our corresponding infrastructure expansion also supports planned product expansion beyond trophon.

We are very pleased with the ongoing progress being made with the transition to the updated sales model. Our North American team and the GE healthcare ultrasound team continue to collaborate well ensuring the current and future infection prevention needs of all customers and their patients are fully met.

The post Nanosonics share price slides lower on business update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. 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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Lithium carbonate prices have levelled off in recent weeks and now trade at 475,500 yuan/tonne at last check.

Despite a small reversal period, prices for the white salt – which is widely used to make cathode material for lithium-ion batteries when in ‘battery grade’ form – are holding multi-year highs on Wednesday.

New bulls arrive for ASX 200 lithium shares

Analysts at Barrenjoey Markets are heavily bullish on three leading ASX 200 lithium shares.

The broker has initiated coverage with buy calls on each of IGO Ltd (ASX: IGO), Allkem Ltd (ASX: AKE) and Liontown Resources Ltd (ASX: LTR).

It values IGO at $14.50 per share and starts Allkem at $15 while assigning a $1.80 price target for Liontown.

For each of these players, this represents a double-digit upside potential should Barrenjoey’s forecasts come to fruition.

Allkem also received an upgrade from Cowen with an $18 per share valuation, whereas analysts at UBS completely reversed course from a sell to a buy rating on IGO.

In a recent note, the Swiss investment bank was constructive on a number of catalysts, including IGO’s first production of battery-grade lithium hydroxide at Kwinana, the Western Areas transaction and a recent pullback in the share price.

Not only that, but IGO’s exposure to the Greenbushes mine remains a key driver for the miner’s share price, UBS says.

“As the downstream ramps up Greenbushes remains the earnings driver into,” it said, adding that the joint venture with Tianqi is substantially de-risked with the Kwinana update.

UBS values IGO at $12.15 per share.

Foolish summary

Each of these ASX 200 lithium shares has pushed well into the green over the past 12 months. Liontown is up 240% in a year whereas Allkem has surged 120% and IGO 62%.

The post Brokers name 3 ASX 200 lithium shares primed to take off appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Why are ASX 200 lithium shares kicking goals today?
• Why the IGO share price is rallying on Monday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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You may be having difficulty finding the latest share price moves for Woodside Petroleum Ltd (ASX: WPL) this morning.

That’s because the S&P/ASX 200 Index (ASX: XJO) energy giant is trading under its new name and ASX ticker today, Woodside Energy Group Ltd (ASX: WDS).

When was the name change revealed?

The company officially announced the rebranding last Friday. This came on the heels of shareholders’ sweeping approval of Woodside’s proposed merger with  BHP Group Ltd‘s (ASX: BHP) petroleum business.

98.66% of the submitted votes were in favour of the merger. The company expects the merger to be complete by 1 June.

Are Woodside Energy and Woodside Petroleum different?

The new name reflects not just the pending merger with BHP’s petroleum assets, but also the company’s plans to play a major role in the global energy transition.

Commenting on the reasoning behind the rebranding at last week’s annual general meeting, chair Richard Goyder said the company “aims to thrive in the energy transition as a low-cost, lower-carbon energy provider”.

According to Goyder, the name change was made “to better reflect our long-term strategic direction and anticipated portfolio evolution through the energy transition”.

Woodside CEO Meg O’Neill lauded the proposed merger with BHP’s petroleum arm, saying, “The merger is an opportunity for Woodside to increase its contribution to the world’s growing energy needs and build the scale, resilience and diversity to thrive through the energy transition.”

She also reflected on the company’s strong performance and commitment to emissions reductions.

On the financials, O’Neil noted, “We generated an operating cash flow of US$3.8 billion, a 105% increase from 2020, strengthening our balance sheet and financial position. We finished the year with more than US$6 billion of liquidity and also maintained our investment-grade credit rating.”

And on the environmental front, O’Neil added:

We have near- and medium-term targets to reduce our net equity Scope 1 and Scope 2 greenhouse gas emissions by 15% by 2025 and 30% by 2030, in support of our aspiration of net zero emissions by 2050 or sooner. Our 2021 net equity Scope 1 and 2 greenhouse gas emissions were 10% below the 2016-2020 gross annual average and on course to achieve our 2025 target.

Woodside share price snapshot

Woodside shareholders have enjoyed some strong returns this year, with shares up 27.9% in 2022 amid rocketing energy costs. By comparison, the ASX 200 is down 5.9% year-to-date.

The post What exactly is the difference between Woodside Energy (WDS) and Woodside Petroleum (WPL)? appeared first on The Motley Fool Australia.

More reading

• Why is the BHP share price sinking 10% today?
• 5 things to watch on the ASX 200 on Wednesday
• Own ASX 200 energy shares? Here’s the ‘key risk to watch’ post election
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Overexposed: What every Australian dividend investor needs to know

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Owners of Westpac Banking Corp (ASX: WBC) shares might want to keep their eyes peeled after reports the sale of the bank’s superannuation business is about to go public.

Rumours the sale of BT Super – which reportedly manages $45.4 billion – is about to go public hit headlines yesterday afternoon.

In early trade on Wednesday, the Westpac share price is climbing, up 2.17% to $24.05.

Let’s look at the news that has put the bank in the headlines this week.

Has Westpac sold its super leg?

Westpac shares could be in the spotlight amid reports Mercer is gearing up to announce its acquisition of the bank’s superannuation platform.

The corporate super fund was tipped as the business’ buyer by The Australian yesterday afternoon.

The purchase will reportedly see Mercer pushing customers from Westpac’s platform to its own, therefore doubling its size in corporate and retail super.

Mercer is also said to be acquiring Westpac’s Advance Asset Management business.

Westpac continues to work towards offloading its BT Panorama wealth management platform, of which BT super is a part.

The Australian claims that Commonwealth Bank of Australia (ASX: CBA)’s partly owned Colonial First State is in the lead to win the platform.

Previously, AMP Ltd (ASX: AMP) was rumoured to be involved in acquisition talks for the platform.

Offers for BT Panorama have been around $1 billion, according to the publication.

Westpac share price snapshot

The Westpac share price is outperforming all of its ASX 200 big four peers so far this year.

It has gained 12.6% year to date.

The S&P/ASX 200 Index (ASX: XJO) has slipped 3.6% in that time. Meanwhile, the next best performing big four bank – National Australia Bank Ltd (ASX: NAB) – has recorded a 9.78% gain.

Though, the Westpac share price has fallen around 8.5% since this time last year.

Only Australia and New Zealand Banking Group Ltd (ASX: ANZ) has recorded a worse slip. It has tumbled 9.3% over the last 12 months.

The post Own Westpac shares? Here’s why the bank’s $45b super business is hitting headlines appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the CBA dividend in 2022 and 2023?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Could ASX shares pay out $100b in dividends this year? Expert weighs in
• Is the Westpac share price the cheapest in the bank sector today?
• Is the CBA share price a buy following the bank’s digital mortgage launch?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 APA Group (ASX: APA) share price has shaken off this morning’s dip amid news the company has made a leap towards growing its East Coast Gas Grid.

The gas pipeline operator has embarked on the second stage of its network expansion which aims to add around 13% of capacity for Australia’s southern states by winter 2024.

At the time of writing, the APA share price is $11.59, the same as its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is in the green this morning. It’s currently up 0.43%.

Additionally, APA’s home sector – the S&P/ASX 200 Utilities Index (ASX: XUJ) – is recording a 0.39% gain.

Let’s take a closer look at today’s news from the energy infrastructure company.

APA embarks on expansion’s second stage

The APA share price recovered from an early plunge on Wednesday as the company works to address potential shortages of gas in south-eastern states.

The Australian Energy Market Operator recently flagged shortfalls of gas might be felt in Victoria, the ACT, New South Wales, and Tasmania in extreme weather from as early as 2023.

APA’s network expansion aims to address such concerns, adding 25% of capacity at a total investment of around $270 million.

The first stage – set to add 12% of capacity – is already under construction and should be finished before winter 2023.

The second stage will see APA working on the South West Queensland Pipeline and Moomba Sydney Pipeline. It’s set to be completed by winter 2024.

The two pipelines deliver gas from Queensland and the NT to southern markets.

APA CEO and managing director Rob Wheals commented on today’s news, saying:

APA is playing a critical role in delivering additional energy security for southern gas markets ahead of forecast supply risks … Pipeline gas is also lower emissions than gas proposed to be supplied by east coast LNG import terminals, and more cost effective given the strong global demand for LNG.

APA share price snapshot

The APA share price has outperformed the ASX 200 over 2022 so far.

Right now, the stock is 15% higher than it was at the start of this year. Over the period, the index has tumbled 5.7%.

APA’s shares are also trading for 22% more than they were this time last year. Meanwhile, the ASX 200 is flat.

The post Why is the APA share price lifting on Wednesday? appeared first on The Motley Fool Australia.

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• Here’s why the APA share price is in the green today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group. 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 Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is breathing a sigh of relief after publishing its results for the full year ending 31 March 2022.

At the time of writing, shares are swapping hands at $18.89, 0.9% above their previous closing price.

Fisher & Paykel share price lifts on

• Total operating revenue down 15% compared to the prior corresponding period to $1.68 billion
• Net profit after tax (NPAT) down 28% to $376.9 million
• New application consumables revenue up 3% on a constant currency basis
• Research and development investment of $154 million
• Declared final dividend of 22.5 cents per share, up 2% from the prior year
• Total dividends for the financial year up 4% to 39.5 cents per share

What else happened during the year?

For the 12 months ended 31 March, Fisher & Paykel incurred a 15% decline in revenue to $1.68 billion. However, the company highlighted the unprecedented nature of the previous financial year during the peak of COVID-19. As such, Fisher & Paykel noted that the latest revenue result still represents a 33% stronger outcome than the pre-COVID-19 financial year.

The pandemic acted as a major catalyst for increased sales of various respiratory apparatuses. Furthermore, the company is building upon this success with the launch of two new nasal high flow interfaces, Optiflow Switch and Optiflow Trace.

With regards to profits, gross margin was reduced by 59 basis points to 62.6% during the year. Higher freight costs led to an increase in the use of air freight, resulting in margin pressure.

What did management say?

Commenting on the full-year result, Fisher & Paykel managing director and CEO Lewis Gradon said:

Over the last two financial years, we have supplied $880 million of hospital hardware, the equivalent of approximately 10 years’ hardware sales prior to COVID-19. The growing body of evidence supporting the use of nasal high flow and our other respiratory therapies shows that our products have a clear role to play in improving care and outcomes beyond COVID-19 patients. We have a proven fifty-year track record of changing clinical practice and now we have the additional benefit of customers already having our hardware and clinical experience with its use.

Overall, management reflected positively on its latest performance. However, the path forward appears to be cloudy for the company.

What’s next?

Looking forward, the Australian healthcare giant is taking a cautionary stance. According to the company, COVID-19 instances have possibly peaked, which leaves Fisher & Paykel expecting hospital hardware revenue to slow down in FY2023.

Moreover, management refrained from providing future guidance due to ongoing uncertainties. Although, freight costs are anticipated to remain elevated for the time ahead. In light of this, Fisher & Paykel is holding higher levels of inventory to negate freight issues.

Fisher & Paykel share price snapshot

Amid a cooling in sales growth, the Fisher & Paykel share price has tumbled throughout the front end of this year. Since the turn of 2022, shares in the respiratory device manufacturer have diminished by 39% in value.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen nearly 6% — which is still 33% better than the healthcare company.

The post Fisher & Paykel share price exhales following ‘strong’ full-year results appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Coles, Fisher & Paykel Healthcare, and PolyNovo shares are rising
• Guess which ASX 200 shares are defying today’s sell-off to climb higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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