Fisher & Paykel Healthcare Corporation Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest half-year earnings release from Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH), an important milestone in the company's journey to build a stronger business. Fisher & Paykel Healthcare reported NZ$1.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NZ$0.36 beat expectations, being 6.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Fisher & Paykel Healthcare from 15 analysts is for revenues of NZ$2.26b in 2026. If met, it would imply a reasonable 4.6% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.0% to NZ$0.77. Before this earnings report, the analysts had been forecasting revenues of NZ$2.25b and earnings per share (EPS) of NZ$0.74 in 2026. So the consensus seems to have become somewhat more optimistic on Fisher & Paykel Healthcare's earnings potential following these results.

See our latest analysis for Fisher & Paykel Healthcare

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to NZ$39.35. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Fisher & Paykel Healthcare analyst has a price target of NZ$46.00 per share, while the most pessimistic values it at NZ$28.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Fisher & Paykel Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.7% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fisher & Paykel Healthcare is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fisher & Paykel Healthcare's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Fisher & Paykel Healthcare going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Fisher & Paykel Healthcare Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.