Fisher & Paykel Healthcare’s updated full year revenue guidance of $1.69-1.70bn was a -3% miss on Macquarie’s estimates, with the broker attributing lower than expected consuables revenue to a decrease in hospitalisation intensity.
According to Macquarie while the company has delivered around seven years’ worth of device growth in just two years, clinical device adoption may take longer than previously expected but a clear read on device adoption is unlikely until FY23.
In the meantime, the broker reduces earnings per share estimates -5%, -21% and -23% through to FY24 on decreasing hospitalisations.
The Outperform rating is retained and the target price decreases to NZ$29.87 from NZ$37.57.
Sector: Health Care Equipment & Services.
Current Price is $22.82. Target price not assessed.
