Sleep mask clearance lifts revenue outlook
FISHER & Paykel Healthcare Corp has upgraded revenue and earnings guidance after gaining US regulatory clearance for its new sleep mask earlier than expected.
The company said it expects operating revenue of $1.19 billion for the 12 months to March 31, 2020. That is up from the previous estimate provided in August, when it held its annual meeting, was $1.17 billion.
Net profit after tax is now forecast at $255 million to $265 million, up from earlier guidance of $245 million to $255 million.
The new estimate assumes an exchange rate of about 63 cents to the dollar for the rest of the year.
About half of F&P Healthcare’s operating revenue is in US dollars.
Shares of F&P Healthcare closed on Friday at $17, having gained 32.4% over the year to date.
The company said it had improved guidance after receiving regulatory clearance to sell its ViteraTM breathing mask in the United States.
The face mask treats obstructive sleep apnea and was not expected to be released in the US until next year.
‘‘Clearance of Vitera for sale in the US this month is sooner than we had previously guided and this has been a meaningful contributor to the increase in our guidance,’’ managing director Lewis Gradon said in a statement.
Mr Gradon said the mask had already been received well in Australia, Canada, New Zealand and Europe.
The new guidance also incorporates a refinement of its expected research and development tax credit, F&P Healthcare said.
In 2019, the company posted record operating revenue of $1.07 billion, up 9%.
Net profit after tax was up 10% to $209 million. — BusinessDesk