Cochlear shares plunge after reporting sales drop in Q3
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More news: Shares in Cochlear plunged in early trade after the company cut its FY26 earnings guidance to $330 million, down from its previous target of $435-460 million.
The downgrade follows significant third-quarter sales weakness in the Middle East due to the ongoing conflict.
Shares had fallen 37.07% to $105.68 at 10:50am AEST.
Cochlear cuts FY26 guidance after Q3 sales drop, Middle East uncertainty
The news: Hearing implant maker Cochlear has slashed its FY26 earnings guidance, citing softer-than-expected sales in the third quarter and “heightened uncertainty” over fourth quarter sales in the Middle East due to the ongoing conflict.
The numbers: Cochlear is now guiding for underlying net profit of $290 million to $330 million. It previously said it was tracking the lower end of its original $435-460 million guidance range.
The context: The company said it is dealing with lower-than-expected sales, the potential for provisions for receivables required due to the Middle East conflict, lower gross margin, expenses from reshaping the cost base, and the impact of the strong Australian dollar on earnings.
Cochlear said near-term surgical volumes have been affected by a combination of hospital capacity constraints and reduced referral activity from the hearing aid channel.
Consumer sentiment has declined in key markets, it said, reaching historic lows in the US. The company said the decline is affecting discretionary healthcare decisions in the adults and seniors segment, adding to demand uncertainty in the near term.
The source: ASX
