Fisher & Paykel Appliances' positive full-year result last week has prompted upgrades and a cautiously optimistic outlook by brokerages.
Last Friday Fisher & Paykel shares soared almost 10% in value on news it had beaten its own profit forecasts and those predicted earlier by analysts.
At the time, its shares bounded up 9.9%, by 12c to 62c, around the point at which they have traded since.
The reported profit was $35.5 million for the year ended March, compared with a loss of $88.3 million for the previous corresponding period; with the previous year's result hit by $76 million of impairment losses.
Forsyth Barr broker Tony Conroy said that "for the first time in a long time", Fisher & Paykel had "positively surprised" when it released its full-year 2011 result.
"While the full-year earnings before interest and tax was effectively flat compared to a year ago, it was up 8.6% ahead of forecast; with the appliances division being the main driver," Mr Conroy said.
Since Fisher & Paykel started reporting its gross margins in 2007, last Friday's margin report of 33.3% gain was its best, Mr Conroy said.
"Lower warranty costs followed, following Fisher & Paykel's focus on product quality, and favourable foreign exchange conditions were behind the strong gross margin," he said.
Forsyth Barr was upgrading the stock from "accumulate" to "buy".
Craigs Investment Partners broker Chris Timms was more cautious, noting Fisher & Paykel had again given no guidance, other than that a trading update was due at the August annual meeting for shareholders.
Mr Timms was cautious, he explained, because of volatile raw materials costs and challenging market conditions He said a price increase of 6% was "critical", to offset a 33% increase in raw-material costs, but competition remained "intense", particularly in New Zealand and Australia, due to the strong New Zealand dollar aiding importers.
