Wednesday, April 9, 2008

Fisher & Paykel Healthcare profit downgrade masks good performance

It was almost inevitable that Fisher & Paykel Healthcare [FPH] would come out with a new lower profit guidance to March 31 2008 today, from a former guidance of NZ$67 million down to $58 million dollars.

A higher NZ dollar marks down profit to the company when repatriated back to New Zealand of approximately NZ$2.5 million every percentage point the $US goes down against our currency.

The very good news that should put shareholders minds at rest is that US revenue was up strongly by 18% to US$ 270 million.

On the back of that though high demand for the company's respiratory humidifier products outstripped supply in the all important United States market.

Clearly this shouldn't have happened and management should be well displeased with their efforts in letting down buyers and consumers alike. This highly competitive market doesn't like mistakes such as these.

High demand also for Fisher's consumables and their respiratory and acute care products allowed CEO,Michael Daniell to comment,"we expect a strong start to the new financial year and continuing increase in demand for our products".

Fisher and Paykel Healthcare have grown strongly in the US market over the last five years and are one of the most innovative and technologically driven companies of its type in the world.

FlexiFit 405 Nasal CPAP/BiPAP Mask with Headgear from Fisher & Paykel
Image courtesy FPH





Fisher & Paykel FlexiFit 405 Nasal CPAP/BiPAP Mask with Headgear



Its disruptive sleep apnoea products are especially world leading and it is a fast growing market because of snoring problems caused by overweight and obese patients. The United States is clearly the centre of the sleep apnoea universe because of its sheer number of affected patients and therefore potential consumers.

Its latest sleep apnoea product has been given FDA approval to be used in a home setting.

The size of the Sleep apnoea market and the company's products excited me so much I invested.


FPH shares closed down 12c today to NZ$2.93 pr share on heavy volume.

Historically Fisher & Paykel Healthcare have grown revenues and profits steadily and their innovation and continued R & D spending will assure they will stay on the cutting edge when it comes to product updates and consumer satisfaction and their future looks bright if the innovation continues.





Fisher & Paykel Healthcare @ Share Investor

Share Investor's 2012 Stock Picks
Global Market Sell-Off Stocks: Fisher & Paykel Healthcare
Resmed takes market share from Fisher & Paykel Healthcare
Resmed kicking Fisher & Paykel Heathcares butt?
Share Price Alert: Fisher & Paykel Healthcare Ltd
I'm Buying: Fisher & Paykel Healthcare Ltd
Share Investor's Total Returns: Fisher & Paykel Healthcare Ltd
Share Investor's 2011 Stock Picks
Stock of the Week: Fisher & Paykel Healthcare Ltd
Fisher & Paykel Healthcare & the US Dollar
Mondrian Investment Partners take stake in Fisher & Paykel Healthcare
Fisher & Paykel Healthcare: 2010 Full Year Profit rests on Foreign exchange movement
Long Term View: Fisher & Paykel Healthcare
Stock of the Week: Fisher & Paykel Healthcare
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Schroder Investment Management takes big Fisher & Paykel Healthcare stake
Long VS Short: Fisher & Paykel Healthcare
Big Fisher & Paykel Healthcare trades a curious tale
Why did you buy that stock? [Fisher & Paykel Healthcare]
Drinking and Trading
Share Investor's 2008 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance


Toughen Up: What I've Learned About Surviving Tough TimesToughen Up: What I've Learned About Surviving Tough Times byMichael Hill 
Think Bigger: How to Raise Your Expectations and Achieve EverythingThink Bigger: How to Raise Your Expectations and Achieve Everythingby Michael Hill 




c Share Investor 2008