Fisher & Paykel Healthcare exceeds expectations and gives the NZX50 a boost

A nearly 5 percent increase for Fisher & Paykel Healthcare after its first half financial results boosted New Zealand stock markets on Thursday.

The reference index S & P / NZX50 closed 0.2 percent or 27.8 points at 12,794.6 after a 0.6 percent gain on Wednesday.

Shares in top Fisher & Paykel Healthcare stock rose 4.9 percent to $ 33.78 despite one Profit drop in the first half of the year by 2 percent as the demand for breathing aids to treat Covid-19 slowed. Net income declined to $ 221.8 million from $ 225.5 million a year ago, while spending increased 5 percent to $ 265.3 million.

Greg Main, a director at Jarden, said the result is still exceeding market expectations.

* The Reserve Bank’s forecasts point to a “near recession” from the second half of next year
* NZX50 shrugs against the Reserve Bank’s rate hike with a plus of 0.6 percent
* Fisher & Paykel Healthcare’s bottom line declines 2% as demand for breathing aids to treat Covid-19 fades

“They had very strong hardware sales, these are the machines that they put in hospitals in the first waves during the Covid pandemic.

“So most analysts thought sales would naturally fall, and one of the main areas of outperformance was hardware sales, which were likely to be a positive surprise,” said Main.

A surge of nearly 5 percent for Fisher & Paykel Healthcare held the New Zealand stock market on Thursday.


A surge of nearly 5 percent for Fisher & Paykel Healthcare held the New Zealand stock market on Thursday.

The company’s ability to pass on any cost increases is also viewed positively by the market, and there are signs of a solid medium-term outlook, he said.

Among other blue chips, Meridian Energy fell 3.3 percent to $ 4.61, Contact Energy fell 0.3 percent to $ 7.97, Mainfreight was virtually unchanged, increasing 0.04 percent to 92, $ 11, Spark was down 0.2 percent to $ 4.41, and Auckland Airport was down 1 percent cents to $ 7.92.

Ryman Healthcare was up 0.4 percent to $ 12.25, although Arvida was down 1.5 percent to $ 1.96 and Oceania Healthcare was down 2.2 percent to $ 1.28.

Serko, the corporate travel tech company, slumped 12.4 percent to $ 6.87 after completing its capital increase of $ 75 million at $ 7.05 per share. The company also had a 50 percent increase in net loss after taxes to $ 15.2 million on Wednesday.

“You carried out the capital increase at a discount to the share price, and the result was a little weaker than hoped, with travel restrictions,” said Main.

“You are in an interesting environment and you are probably one of those companies that could be a real global player, which is why you are collecting the money – wait a little longer and wait for the implementation.”

Technology company Rakon published a big jump in interim profit to $ 18.9 million, from $ 4.6 million a year earlier. It was rewarded with a 1.1 percent drop to $ 1.78.

“This has been going well lately, so it probably isn’t that bad considering where it was,” Main said.

The Australian benchmark index S & P / ASX200 rose just 6.7 points to 7406 in late afternoon trading.

On Wall Street, the S&P 500 benchmark index rose 0.2 percent to 4701.46 before markets closed for Thanksgiving in the United States. The markets will reopen for a shortened trading session on Friday.

The blue chip Dow Jones Industrial Average was down less than 0.1 percent to 35,804.38, and the tech-heavy Nasdaq composite was up 0.4 percent to 15,845.23.

– Mit AP

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