Notching Records | Fisher & Paykel Result

30 November 2019

​Global markets ​added to gains overnight as US market notched fresh record highs​, ​as data pointed to a resilient ​US domestic economy​.​

Stock in Focus: Fisher & Paykel Healthcare (FPH:NZX / FPH:ASX)

Fisher & Paykel​ Healthcare shares held on to their recent gains yesterday as it released first half earnings and profit guidance which was unchanged from October. 

​F​PH ​said first-half earnings were up 24​% to 121.2 million, and operating revenue was $570.9 million, 12% above the first half last year.

​In terms of the outlook for the remainder of ​the ​2020​ ​​financial year​, it looks solid and likely conservative. ​FPH anticipate consistent underlying trends in ​the ​Hospital product group​, and ​Homecare revenue for the 2020 financial year similar to the previous financial year, in constant currency terms.​ FPH expect "At current exchange rates we continue to expect full year operating revenue for the 2020 financial year to be approximately $1.19 billion and net profit after tax to be in the range of approximately $255 to $265 million​".

We remain positive on the medium term outlook for FPH as a solid defensive healthcare holding, although new investors may want to be selective on their entry point as FPH shares ​look​ fairly valued ​at the current juncture.

We currently have a BUY rating on FPH.
Members should look out for a full update on FPH to be released in our weekly report.

Australia & New Zealand Market Movers

​​The Australian market continued to rally (ASX 200 index +0.82%)​ and ​Australian shares closed at a record high on Wednesday as confidence that an interim trade deal between the US and China was imminent lifted investor confidence.​ In stock news, Collins Foods' underlying half-year profit has risen 9​% t​o $23.9 million, boosted by a 4.9​%​ rise in same-store sales at its KFC Australia franchises. 
​Shares in Telstra jumped ​as it reaffirmed its underlying earnings guidance of between $7.4 and $7.9 billion. Despite flagging that restructuring costs would be about $300 million higher than expected, it said operating expenses would be lower and that its broader cost-reduction program was on track.

The New Zealand market ​added to gains yesterday (NZX 50 index +0.​69​%) with Ryman leading the market higher, while Metlifecare gave back some of its recent rally. Outside the benchmark index, Cavalier Corporation fell after the company provided first-half guidance at its annual meeting. The wool producer said first-half revenue for 2020 is expected to be between $61-64 million, from $70 million in the first half of this year, while operating earnings are  expected to be in the range of $1.2-$1.9 million from $4.6 million. Turners Automotive Group rose after the car auction house said group revenue was up by 1% to $171 million and underlying net profit before tax had risen by 11% to $14.8 million.


3 Things Markets Will be Watching this Week

  1. ​Trade deal prospects between the US & China remain at the forefront of investor attention.
  2. RBA governor Philip Lowe makes a speech on Tuesday.
  3. The RBNZ releases its financial stability report on Wednesday.


Have a Great Day,


​Global markets ​added to gains overnight as US market notched fresh record highs​, ​as data pointed to a resilient ​US domestic economy​.​

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