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The Fletcher Building Limited (ASX: FBU) share price has climbed in early morning trading by 0.46% to $5.50, after the building materials manufacturer provided earnings guidance for the first half of FY21. 

The company says that its half earnings before interest and tax (EBIT) for the first six months will be between $NZ305 million and $NZ320 million, which compares favourably to the NZ$219 million it made in the first half of 2019.

What else did Fletcher announce today

For the first four months of trading up to 31 October, Fletcher also reported revenues up slightly by 1% to NZ$2.7 billion. It also reported EBIT of NZ$227 million, up by NZ$80 million. Group EBIT margin up 2.9% to 8.4%, due to improved operating efficiency.

Fletcher Building says robust conditions in the residential construction market in both New Zealand and Australia have triggered this solid rebound in profits for the first four months.

However, the company believes there is still a large amount of uncertainty ahead for the rest of 2020-21, although trading would stay solid for the next couple of months at least.

Fletcher expects to restart dividend payments in the 2021 financial year.

A brief look at Fletcher Building

Fletcher Building is a home builder and building products company. Its operations span the entire building supply chain, from raw materials right through to construction.

The company operates across 7 divisions: building products, distribution, steel, concrete, construction, residential and development, and Australia. Some of the leading brands under the company’s banner include Laminex, iPlex, and Tradelink.

Around one third of the group earnings are derived from the manufacture of building products. Following substantial losses incurred in its construction segment, Fletcher has taken corrective action by divesting its global Formica business, and withdrawing from commercial construction projects that led to significant losses. 

Earlier this month, financial analyst Morningstar increased its target price estimate for Fletcher by 7% to $4.50, citing a rebound in the cyclical recovery of the New Zealand home construction industry. 

Fletcher Building’s share price performance in 2020

In early August, Fletcher reported a heavy full-year loss of $NZ196 million for 2019-20. The loss was caused mainly by one-off losses of $NZ276 million, as a result of mass redundancies and fallout from COVID-19.

Due to better market conditions in the second half of FY20, the Fletcher share price has risen by 12% this year. In November alone, its share price increased by almost 40%, following news of the successful vaccine testing. At the current price of $5.50, the company commands a market cap of $4.5 billion.

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• Why the Fletcher Building (ASX:FBU) share price could rocket higher today

Motley Fool contributor Eddy Sunarto 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 Bigtincan Holdings Ltd (ASX: BTH) share price has been a positive performer on Wednesday.

In morning trade the artificial intelligence-powered sales enablement automation platform provider’s shares climbed as much as 4% to $1.27.

Why is the Bigtincan share price climbing higher today?

Investors have been buying the company’s shares following the release of a presentation ahead of its virtual annual general meeting.

That presentation included a summary of its performance in FY 2020 and its expectations for the current financial year.

In FY 2020, management notes that the company delivered new technology releases, new market offerings, new partnerships, and new acquisitions. Combined with the ongoing strong fundamental unit economics of its business, together with increased system utilisation, the company had its strongest year on record.

It reported a 53% increase in annualised recurring revenue (ARR) to $35.8 million. This was driven by the benefits of acquisitions and a 38% increase in organic revenue growth.

At the end of the period, Bigtincan had a retention rate of 89% and a life time value (LTV) of $270 million.

FY 2021 expectations.

Since the end of the last financial year, the company has acquired Denmark-based Agnitio A/S and partnered with Microsoft for remote selling.

Together with organic growth, this is expected to lead to Bigtincan recording ARR in the range of $49 million to $53 million in FY 2021. This represents a 37% to 48% increase year on year. Management is also targeting stable retention for the 12 months.

Its organic ARR growth is expected to be driven by new customer wins, upselling to existing customers, and investments in its technology to support growth in digital and mobility.

Finally, this ARR growth could be given an additional boost in the coming months. Management also revealed that it is still on the lookout for further strategic merger and acquisition opportunities that bring forward its roadmap and take advantage of current market conditions.

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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 and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. 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 public debate this year on COVID-19 restrictions has followed the dilemma that it’s a choice between death by disease or death through recession.

Lockdowns and crowding restrictions save lives by minimising the spread of the coronavirus, as well as the flu and cold.

Opponents claim those same measures also kill people through an economic downturn — unemployment causes misery, triggers family violence, and causes suicides.

University of New South Wales associate professor, Gigi Foster, took this line of argument, polarising public opinion after appearances on ABC’s Q&A panel show.

“Even with a very, very extreme epidemic in Australia we are still potentially better off not having an economic lockdown in the first place, because of the incredible effects that you see not just in the short run but in many, many years to come,” she said in April.

“I know it’s invisible lives and it’s difficult to imagine that when we aggregate, for example, all of the health effects, all of the mental health effects, all of the effects of people right now who have illnesses other than COVID-19.”

Now a new academic study has actually quantified whether recessions do indeed kill more people than at other times.

Recessions actually save lives

A recently published University of Sydney paper seems to have put to bed the argument that economic downturns cost lives.

The study found that there is no relationship between Australian unemployment rates and death rates between 1979 and 2017.

Specifically, it found no significant rise in suicide levels at times of economic hardship.

In fact, periods of high unemployment actually saved lives by reducing motor vehicle accident rates.

Incredibly, for each percentage point increase in unemployment, 70 lives are saved per year.

The theory is that young men, the demographic most vulnerable to road deaths, drive less without a job.

The 2020 COVID-19 recession would end up preventing 425 road deaths, the study estimates. This could even be an underestimation as this recession has seen a far more dramatic decrease in road traffic than other downturns.

The Bureau of Statistics has also found this year Australia has suffered far lower deaths from non-COVID causes. Infections like influenza and the common cold have not had a chance to spread as wildly as normal.

The authors point out their results are similar to findings in other studies from the United Kingdom, Germany, France, Canada, the OECD and Asia-Pacific.

Why are people healthier during economic downturns?

Some reasons why recessions could be good for wellbeing were theorised by economist, Christopher Ruhm, in his paper Are Recessions Good for Your Health? 

“He argued that while economic downturns usually come with financial hardship, they leave people with more time to seek treatment, socialise, care for their relatives, and engage in healthier lifestyles,” said the University of Sydney academic.

“Fewer hours commuting mean fewer road accidents and fewer hours at work mean fewer workplace accidents.”

Ruhm’s research also found smoking and obesity increase when the economy runs well, perhaps because people have more disposable income.

The one caveat with the Australian findings is that they differ from the United States experience.

In the US, vulnerable demographics like very young children and elderly people do suffer higher death rates during economic downturns.

The fact that Australia avoids this fate is attributed to access to universal health care, which Americans do not possess.

More reading

• The Objective Corp (ASX:OCL) share price is up ahead of AGM
• Here’s why the Galaxy Resources (ASX:GXY) share price is in a trading halt
• Why the Tower Insurance (ASX:TWR) share price could move lower today
• Why the LiveTiles (ASX:LVT) share price is pushing higher today
• Why the Integrated Research (ASX:IRI) share price is dropping lower

Motley Fool contributor Tony Yoo 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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Objective Corporation Limited (ASX: OCL) has released its FY21 outlook prior to its AGM today. In it, the company committed to a growth strategy based on digital engagement, research and development, and building recurring revenue streams. In year to date trading, the Objective share price has more than doubled, growing by 109% at the time of writing.  

FY20 was a benchmark year for the IT services and products company. It achieved a 22% increase in annual recurring revenue, cresting at $56.6 million. Simultaneously, it has grown net profit after tax (NPAT) by 22%. let’s take a closer look.

What’s driving the Objective share price?

Objective builds products largely for government and regulated industries. During FY20, the company saw fast growth for the Objective GOV365 product. This is a governance product for Microsoft teams. During FY20, Microsoft teams went from 20 million to 75 million daily users. Thus helping to protect commercially sensitive data.

The Objective share price benefited from positive trading updates during the COVID-19 pandemic. In fact, it reached new highs after the release of the FY20 annual report showing record growth. During FY21, the company has already acquired regulation technology specialist Itree. This is a cloud-based product company active in Australia and New Zealand. It was profitable on acquisition.

FY21 outlook

Objective continues to spend 20% of revenues on research and development, and is accelerating its integration of the Itree product.

It has also accelerated its growth through acquisitions. The company has honed its skillset in re-branding, integrating and delivery of products to market as a result, and gained praise for its customer service. 

In the Gartner Magic Quadrant for content services platforms, analyst company Gartner Group recently stated:

Objective had the highest Gartner Peer Insights scores for product capabilities and the ability to meet organisational needs.

It was also in the top five for ease of experience and overall experience, indicating that users of the solution are generally happy with both the service and product.

Objective plans to fully integrate two additional products, RegWorks and Reach into its platform, as well as leveraging artificial intelligence and machine learning. Its digital engagement strategy aims to leverage its Objective Redact product, currently 50% of US revenues.

On the financial front, Objective follows conservative accounting practices, and has reiterated its intention to be disciplined with all acquisition opportunities. It also underlined its expectation for material growth in revenue and profitability through the year, focussing on conversion to subscription based contracts.

The Objective share price opened at $13.11 today, and is currently trading up 0.61% at $3.18.

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Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Objective Limited. 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 Galaxy Resources Limited (ASX: GXY) share price has been an impressive performer this month.

Since the start of November, the lithium miner’s shares have stormed 43% higher.

However, the Galaxy share price won’t be extending this incredible run on Wednesday after it requested a trading halt.

Why is the Galaxy share price in a trading halt?

This morning the company has decided to take advantage of this strong share price rise and undertake an equity raising.

Galaxy has announced that it is aiming to raise a total of $161 million from investors. This comprises a fully underwritten $111 million institutional placement and a $50 million fully underwritten 1 for 14 pro-rata accelerated non-renounceable entitlement offer.

According to the release, the company is raising the funds at $1.70 per new share, which represents a 15% discount to its last close price of $2.00.

Why is Galaxy raising funds?

Given that Galaxy already had a significant cash balance, investors will no doubt be wondering why it has launched its equity raising.

The release explains that the proceeds from the offer will be applied to Sal de Vida Stage 1 and fund pre-development activities to progress James Bay to a construction ready status.

Management notes that the successful completion of the offer would deliver funding certainty in order for it to continue with the Sal de Vida Stage 1 capital program and meet previously stated development timelines, mitigating pricing uncertainty of alternative funding routes arising from COVID-19.

Upon completion, Galaxy’s balance sheet will be further strengthened with pro-forma cash and financial assets to increase from US$102 million (as of 1 November 2020) to US$219 million (before offer costs).

Galaxy’s CEO, Simon Hay, commented: “This Equity Financing provides Galaxy with an enhanced level of certainty to commit to execute and develop Sal de Vida into a successful, lowest-quartile cost lithium brine operation. Securing this funding for Stage 1 would allow us to confidently proceed into the early works phase, contract long lead items and complete pond construction in 2021 during the weather window.”

“With EV demand continuing to rise in Europe and North America, we will also accelerate James Bay to a construction ready status as these regions seek to localise raw materials supply and/or build-out lithium chemicals capacity. We will utilise these funds to advance and execute the development of our world-class assets and ultimately seek to contribute to supplying the expected global demand surge in lithium,” he concluded.

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• These are the 10 most shorted shares on the ASX

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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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Kiwi insurer Tower Limited (ASX:TWR) (NZX:TWR) today announced a drop in statutory profit of NZ$12.3 million – this compares to $NZ16.8 million at the same time last year. This figure includes the $9.5 million received from the recently announced Earthquake Commission (EQC) settlement of $42.1 million.

What else did Tower announce

Tower says its investment in digital and data has helped the company grow its gross written premium by 8% to $385 million, and increase customer numbers by 11% to 300,000.

The company says it has improved its loss ratio from 48% to 46% in FY20, which demonstrates its ability to grow the business while managing claims effectively. Loss ratio is used in the insurance industry to represent the ratio of losses (claims paid) to premiums earned.

As mentioned, Tower has received $42.1m from the EQC as part of the New Zealand government’s effort to reimburse insurers for the amounts they spent fixing earthquake-damaged homes in Canterbury in 2010.

Tower says it will not pay dividends, citing Reserve Bank advice for the financial sector to preserve capital in light of the COVID-19 disruption and uncertain economic outlook. It plans to resume dividend payments in the 2021 financial year, subject to market conditions.

Tower’s digital investment

Tower says its investment in digital and data is paying off . Tower CEO Blair Turnbull, who joined the company in August 2020, says the company’s digital and data strategy is a game changer, and is laying the groundwork to transform how the company delivered insurance in New Zealand and the Pacific.

The company has made significant investments in digital and data technology by entering into partnerships with the likes of the University of Auckland’s Science Faculty, Ushur in the US, Amodo in Croatia, as well as existing partners such as Corelogic.

Cost restructuring

Tower focused on reducing costs, moving much of its business online and reducing staff. In May, the company announced plans for 108 redundancies, as part of its wider effort to save NZ$7.2m a year. In the year to September, Tower reduced its staff to 601, from 659 last year.

About the Tower share price this year

The Tower share price has lost 15% in 2020. The share price started the year at 68 cents, and is now trading at 58 cents. At this current price, it commands a market value of $247 million.

More reading

• Why the Tower (ASX:TWR) share price is up 4% today

Motley Fool contributor Eddy Sunarto 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 LiveTiles Ltd (ASX: LVT) share price is pushing higher on Wednesday following the release of an announcement.

In early trade the intranet and workplace technology software provider’s shares are up 3.5% to 29.5 cents.

What did LiveTiles announce?

This morning LiveTiles announced the launch of a personalised video experience solution – LiveTiles Smart Video.

Management notes that this new solution, which leverages artificial intelligence and powerful video technology, makes significant improvements on the video search capabilities currently available to the market.

It indexes recorded video in a way that can be reassembled as a virtual video frame‐by‐frame, unlocking previously inaccessible value from recorded video in platforms like Microsoft Teams, Zoom, or Webex.

This removes the need for people to have to view hours and hours of content hoping to find what they are looking for. Management expects this to drive greater productivity for better business decision making.

What’s the market opportunity?

There certainly is a growing market for this solution to target.

According to the release, Microsoft estimated in April that its Microsoft Teams product recorded 2.7 billion meetings minutes in a single day on March 31. This was up more than 200% on the previous record from March 16.

It also notes that 22% of people using video conferencing are recording their meetings.

LiveTiles already has its first customer for the LiveTiles Smart Video solution. It revealed that it has secured a major Australian university as a pilot customer.

It is deploying the solution to the higher education provider to revolutionise the way it leverages recorded learning assets to create a new learning experience for students that meet the challenges of COVID‐19.

LiveTiles Co‐Founder and Chief Executive Officer, Karl Redenbach, said: “The video‐conferencing market has undergone one of the largest periods of growth and transformation in history due to COVID‐19. As end‐users look to extract more value from the billions of minutes of video accumulating every day, LiveTiles and Linius are at the forefront of adding value for video conferencing end‐users in their digital workplaces using Artificial Intelligence.”

More reading

• Why the LiveTiles (ASX:LVT) share price is jumping 6% higher today
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• Why Afterpay, LiveTiles, PointsBet, & Santos shares are tumbling lower

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 LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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 Integrated Research Limited (ASX: IRI) share price is on the slide on Wednesday.

In morning trade the performance management software company’s shares are down 2% to $3.63.

Why is the Integrated Research share price dropping lower?

Investors have been selling the company’s shares today following the release of its annual general meeting presentation.

At the event, management provided investors with a summary of its performance in FY 2020, an update on current trading conditions, and its expectations for the future.

In respect to the former, Integrated Research was a positive performer in FY 2020 and delivered solid top and bottom line growth.

Revenue came in 10% higher to $110.9 million and profit after tax also rose 10% to $24.1 million. This allowed the Integrated Research board to maintain its dividend at 7.25 cents per share at a time when many companies were either cancelling or deferring dividends.

Management notes that this result was driven by 15% growth in licence sales to $72.1 million and a solid performance from its professional services business.

Trading update.

Unfortunately, Integrated Research’s CFO, Peter Adams, revealed that the company’s positive form hasn’t continued in FY 2021.

He commented: “Our revenues for the first four months of FY21 are behind the prior corresponding period. With the ongoing global uncertainty around Covid and the election in the US, we are seeing our typical sales cycle lengthen and some customers deferring purchasing decisions.”

In addition to this, the company is facing meaningful foreign exchange headwinds.

Mr Adams explained: “With over 95% of IR’s revenues derived outside of Australia, the volatility of currency exchange rates can significantly impact our results. For example, a one cent movement in the AUD/US exchange rate can affect revenue by over one million dollars on an annualised basis. Year to date currency trends represent a headwind.”

In light of the above, the chief financial officer has warned that “there is some risk that both revenue and profit for the first half may be below the prior corresponding period.”

Long term outlook.

While FY 2021 may be a tough year for Integrated Research, management remains positive on the longer term.

Mr Adams said: “Beyond this we have a positive outlook. The recent release of new SaaS products is a key driver to future growth. We anticipate that SaaS bookings will build progressively over the remainder of FY21 and will lead to meaningful revenue contributions in FY22 and beyond.”

“These new solutions come at a time when where we see market trends moving in our favour. This includes the increase in remote working and the increase in cashless transactions,” he concluded.

More reading

• Why the LiveTiles (ASX:LVT) share price is pushing higher today
• Harvey Norman (ASX:HVN) share price higher on stellar sales update
• Fisher & Paykel (ASX:FPH) share price on watch following half-year results
• Is the CBA (ASX:CBA) share price a buy?
• Why the Kogan (ASX:KGN) share price is underperforming

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 Integrated Research Limited. 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 Harvey Norman Holdings Limited (ASX: HVN) share price is pushing higher on Wednesday after the release of a trading update.

At the time of writing, the retail giant’s shares are up 2% to $4.78.

How is Harvey Norman performing in FY 2021?

Harvey Norman has started FY 2021 in a very positive fashion and has recorded strong sales and profit growth.

According to the release, aggregated sales revenue increased by 28.2% between 1 July and 21 November compared to the prior corresponding period.

This has been driven by strong same store sales growth across almost all regions and particularly in the ANZ market.

Harvey Norman’s Australian franchisees delivered a 30.4% increase in comparable store sales and its New Zealand stores reported a 20.4% lift in comparable store sales. This includes stores that were temporarily closed due to COVID-19.

A total of 18 stores were closed in greater Melbourne from 6 August to 27 October due to stage 4 restrictions. These stores quickly moved to a click & collect and contactless delivery model to limit the sales impact.

A further 10 stores were closed in South Australia for a 3-day period from 19 November in order to prevent a COVID-19 second wave in the region. These stores have now reopened as normal.

Strong profit growth.

Pleasingly, for shareholders, Harvey Norman’s profit growth has been even stronger in FY 2021 thanks to margin expansion.

The release explains that its unaudited profit before tax for 1 July to 31 October was up a massive 160.1% on the prior corresponding period.

Management advised that, excluding the net impact of AASB 16 Leases and net property revaluation adjustments, it achieved a profit before tax of $341.11 million for the fourth months. This compares to $131.17 million in the prior corresponding period.

Though, management has warned that there is no guarantee that this strong form will continue throughout the remainder of the half or full year. It notes that “the COVID-19 pandemic has caused, and continues to cause, great uncertainty about the future economy.”

More reading

• 5 things to watch on the ASX 200 on Wednesday
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• 3 ASX dividend shares rated as buys by brokers

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 Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could be on the move today. This comes after the company released its half-year results for FY21.

Fisher & Paykel is a New Zealand-based company that designs, manufacturers and markets products for a range of treatments. These include use in respiratory care, acute care, surgery and the management of obstructive sleep apnoea.

What will be moving the Fisher & Paykel share price?

It will be interesting to see how the Fisher & Paykel share price performs today after the company reported strong results for the first half of FY21.

For the period ending 30 September, Fisher & Paykel reported net profit after tax of $225.5 million. This reflected an 86% improvement over the prior corresponding period (pcp).

Operating revenue grew to $910.2 million, a 59% uplift on the first half of FY20. The strong set of numbers came from a surge in demand for the company’s hospital hardware, particularly Optiflow and Airvo systems. Traditionally, nasal high flow therapy is used in clinical practices, however, this was shifted as a front-line treatment for COVID-19 patients in hospitals.

In the hospital portfolio alone, operating revenue jumped more than 93% over the first-half year results for FY20. The $681 million achievement made up three-quarters of the company’s entire operating revenue, highlighting the importance of its lifesaving products.

The homecare product group, which includes treatment for sleep apnoea, gained 5% in revenue to $226.2 million over the pcp.

Gross margin fell to 61.7% for the half-year as use of air freight was used more frequently. The cost to transport the goods also rose, weighing down on the result. However, the company noted that excluding air freight, gross margin is broadly in line with last year’s performance.

The board declared an interim dividend of 16 cents per share to be paid to shareholders on 16 December. This represents a 33% increase on the prior comparable period’s dividend.

Management commentary

Fisher & Paykel Managing Director and CEO, Mr Lewis Gradon, commented on the group’s scorecard for H1 FY21. He said:

We had a strong first half of the year and have continued to expand our installed base of hardware in hospitals.

Since our last trading update in August, we maintained the same level of both hardware and consumables revenue in our Hospital product group for the half year. In our Homecare product group, OSA masks revenue also continued at similar levels to the first four months of the financial year.

Sales in hardware and consumables continued to track surges in COVID-19 globally, as the virus moved across Europe, North America, South America and South Asia.

Since the pandemic started, many sleep clinics have been closed, resulting in a reduction in new patient diagnoses. Our F&P Evora and F&P Vitera masks for OSA are great products that have yet to reach their full potential.

Remaining outlook for FY21

With focus now on the second-half, Fisher & Paykel did not provide guidance for the end of the FY21 year. This is due to the uncertain nature of COVID-19, and the fact that vaccine developments are still progressing in the background.

However, the company did advise that if things return to normal, it could project some estimations for FY21. This is dependent upon hospital hardware sales, OSA diagnosis rates, and freight costs returning to normal levels.

Based on these assumptions, Fisher & Paykel forecasts operating revenue to be around $1.72 billion. Net profit after tax would fall somewhere between $400 million to $415 million, provided exchange rates remain relatively stable.

About the Fisher & Paykel share price

The Fisher & Paykel share price has been surging forward over the past 12 months. Reaching an all-time high of $34.92 in the middle of July, its shares are sitting just 8% below this level at the time of writing. It will be interesting to see whether the Fisher & Paykel share price can break its record on the back of its robust results.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage
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• 3 shares that have reacted adversely to vaccine news
• Why Resmed, Coles, Afterpay and one other have made early share price gains

Motley Fool contributor Aaron Teboneras 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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