Fisher & Paykel Earnings: Strong Demand in Homecare Consumables and Resilient Margins

We raise our fair value estimate for narrow-moat Fisher & Paykel by 2% to NZD 22.50, or AUD 21.00 at current exchange rates, largely due to the time value of money. First-half revenue grew 16% to NZD 804 million and net profit after tax grew 22% to NZD 107 million, both slightly ahead of prior guidance. Management reiterated its fiscal 2024 revenue guidance of roughly NZD 1.7 billion but also provided fiscal 2024 NPAT guidance of NZD 250 million-NZD 260 million. The guidance implies a stronger second half reflective of typical seasonality given the North American flu season.