Cochlear sinks after Nexa rollout hits half-year profit
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More news: Shares in Cochlear plunged in early trade after the company reported a 21% fall in statutory net profit. The rollout of its Nucleus Nexa system took longer than expected and weighed on first-half earnings.
Shares plummeted 15.90% to $206.59 at 12:10pm AEDT.
Cochlear half-year profit drops 21% on Nexa delays
The news: Hearing implant maker Cochlear reported a 21% decrease in statutory net profit for the first-half as delays in contracting and price negotiations for its new Nexa implant system weighed on earnings.
The numbers: The statutory net profit stood at $161.5 million, missing average forecasts of $176 million, according to Visible Alpha.
Underlying net profit fell 9% to $195 million, while revenue was up 1% to $1.18 billion, below analysts' estimates of $1.21 billion.
The company declared an interim dividend of 2.15 cents per share, unchanged from a year earlier, and slightly below consensus estimates of 2.16 cents per share.
The context: Cochlear said first-half profit came in below expectations as the rollout of its Nucleus Nexa system took longer than expected, with efforts to secure price increases and renewed contracts delaying revenue momentum in the first half.
The company expects a stronger second-half, supported by broader availability of Nexa, improved services growth and stronger momentum in its acoustics business.
Cochlear flagged that underlying net profit for the full-year is now expected to be toward the lower end of its $435 million to $460 million guidance range.
The company also warned that currency exchange remains a risk, noting if the Australian dollar remains at current levels, underlying net profit would be about $30 million lower than forecast.
The source: ASX
