The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has gone up around 6% after giving strong FY23 guidance.
FY23 strong guidance
Management has given guidance for the full 2023 financial year – revenue is expected to be within the range of $1.55 billion to $1.60 billion (at the current exchange rates).
The Managing Director and CEO Lewis Gradon said that the company is seeing increased sales of its hospital hardware and consumables in China as the country manages its current wave of COVID-19.
He also said that an early start to the flu season and the prevalence of respiratory syncytial virus (RSV) is also adding to the demand for its hospital consumables in North America during the final months of 2022, though this is now reportedly easing.
Fisher & Paykel Healthcare told investors that on a global basis, its hospital hardware revenue continues to exceed pre-pandemic levels as it responds to COVID-19 surges.
In the homecare product group, sales of its OSA (obstructive sleep apnea) have remained strong according to the company. The mask sales growth rate is currently tracking above its first half as global supply of CPAP (continuous positive airway pressure) improves and its Evora Full continues to perform well.
Rapidly responding to recent demand surges in both China and North America includes both positive and negative short-term impacts to its gross margin. But, it’s not expecting much of an overall impact to the margin guidance that it gave in November 2022.
Mr Gradon concluded his thoughts on the situation by acknowledging the ongoing efforts on customers, clinical partners, suppliers and teams for the ongoing effort to respond to COVID surges.
Final thoughts on the Fisher & Paykel Healthcare share price
Despite rallying since the low in October, it’s still down more than 10% in the past year.
Fisher & Paykel Healthcare shares have gone through a lot, but with the strength of demand for its products, things are looking good right now. However, how long will this demand last in China? I’m not sure. It depends on how the COVID situation develops.
But, I think it could be better to look at other ASX growth shares that aren’t seeing such strong operating conditions.
