Fisher & Paykel Healthcare lost 7%, disappointing the market with its revenue forecast falling short of expectations.
The benchmark S&P/NZX50 index fell 1.1% to 12,061 after rising 0.2% on Tuesday.
Fisher & Paykel Healthcare, one of the largest stocks on the NZX, fell 7.8% to $25.70.
Greg Main, director of Jarden, said Fisher & Paykel Healthcare was weighing on the market after lowering its revenue forecast to a range between $1.675 billion and $1.7 billion.
* S&P/NZX50 index up 0.2%, Warehouse Group benefits from a 4% increase
* Kathmandu owner Rip Curl sinks to $5.5m first-half loss
* Air New Zealand sets ambitious target for ultra-long-haul Auckland-New York flights
This compares to revenue of $1.97 billion in the previous 12 fiscal months, a banner year for the company.
“Consensus was previously at $1.75 billion, and they also highlighted higher freight costs, which should impact their long-term gross margin. They are targeting a long-term gross margin of 65%, that could have an impact of 250 basis points,” Main said.
“It will be interesting to see once we have a bit more clarity on whether we can pass on some of the inflationary costs.”
Kathmandu and Rip Curl owner KMD Brands was unchanged at $1.33 despite an interim net loss of $5.5 million.
KMD Brands, formerly Kathmandu Holdings, had posted a profit of $22.3 million the previous year. In February, it said first-half earnings through the end of January would plummet after losing 11,696 trading days.
“They had only provided recent guidance, so it was basically in line with that,” Main said.
“They had a very weak first quarter because of the lockdowns and then some improvements in the second quarter.”
Auckland Airport fell 0.9% to $7.66, Fletcher Building fell 1.6% to $6.38, Meridian Energy rose 0.5% to $5.06 and Mercury Energy rose 0.8% to $5.72.
Warehouse Group jumped 3.2% to $3.19, building on a 4.3% rise on Tuesday when it reported an 8.2% drop in first-half profit.
Sky TV rose 3% to $2.75, Mainfreight rose 1.2% to $80 and NZX rose 1.4% to $1.44.
Air New Zealand was flat at $1.41. The airline began selling non-stop Auckland to New York fares on Wednesday, nearly two years after the pandemic forced the airline to delay the launch of the route, which was originally scheduled to launch in October 2020.
Economy fares start from $986 one way or $1,979 round trip.
Across the Tasman, the S&P/ASX200 index rose 0.5% to 7382.5 by late afternoon trading, and markets rose across Asia.
Earlier on Wall Street, the S&P 500 rose 1.1% to 4511.61, with more than 70% of stocks in the benchmark index posting gains. The Dow Jones Industrial Average gained 0.7% to 34,807.46. The tech-heavy Nasdaq rose 2% to 14,108.82.
Unusually, the rise in stocks came a day after US Federal Reserve Chairman Jerome Powell said the central bank was ready to raise interest rates more aggressively in its fight against inflation. , if she needed it. Powell said the Fed would raise its benchmark short-term interest rate by half a point at multiple Fed meetings if needed.
“Normally you’d expect the market to handle this sort of thing given that higher interest rates impact the market, but I guess the market was looking at it saying they’re getting serious. about inflation and maybe they charge the increases before probably give them more policy flexibility a bit later,” Main said.
Last Wednesday, the central bank announced a quarter-point rate hike, its first interest rate hike since 2018. The Fed has not raised its key rate by half a point since May 2000.
– With PA