Why The Fisher & Paykel Healthcare Corp’s Share Price Jumped Today

What does Fisher & Paykel Healthcare do?

Fisher & Paykel Healthcare Corporation [ASX:FPH] provide services in two major product groups: respiratory acute care and obstructive sleep apnoea.

They offer a range of ventilation, or oxygen therapy, products such as respiratory humidifiers and infant resuscitators.

And, for sleep apnoea, they have a range of products to assist improved sleep. This is a market that’s expected to grow as an ageing population becomes more prone to sleep-related disorders.

FPH is a global operation, and their products are sold worldwide. Approximately 99% of sales revenue is derived from outside their native New Zealand.

The company has all of its research and development, and some of its manufacturing operations, at its New Zealand plant, but they also have a plant in Mexico — whose output is growing strongly.

What’s happening to drive the share price?

The last significant news from the company was back on 27 November. That was the half-year results for the half ending 30 September.

The company posted record half-year net profits of NZ$62 million, up 27%. Operating revenues came in at NZ$381 million, another record, and up 20% on the same period from the year prior. The dividend was increased 16% on the previous year. These were solid results posted back in November.

Fisher & Paykel Healthcare has become a dominant player in global markets; strong demand is coming from China and India, which are developing their healthcare infrastructure.

The company is confident of continued growth, as hospitals and other healthcare providers look to FPH products to cut down hospital stays and reduce costs.

There are also big growth opportunities in new therapies they’re developing in regards to sleep and breathing disorders.

What now for Fisher & Paykel Healthcare?

The company should release their full-year results fairly soon. Looking at the chart of the company share price, those full-year results will likewise be positive. Until the chart says otherwise, the outlook for this company looks good.

Terence Duffy,
Cycles, Trends and Forecasts

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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