Cochlear upgrades FY24 earnings guidance
Make us a preferred source
Make us a preferred source on Google
The news: Hearing devices manufacturer Cochlear upgraded its earnings guidance following better-than-expected growth in first-half revenue.
The numbers: Cochlear's underlying net profit for the full year is expected to be $385 million-$400 million, up 26%-21% on FY23. The upgrade is 8% above the midpoint of the previous guidance of $355 million-$375 million issued in August 2023.
First-half sales revenue increased 25% to $1.113 billion, with an underlying net profit of $192 million.
The context: The Sydney-based company said its shift on guidance is due to an expected 10%-15% growth in its cochlear implant units for the financial year, compared to the high single-digit growth expected in August.
Cochlear shares fell this week after reports that sales of its implants could be impacted by Moderna's experimental mRNA vaccine against cytomegalovirus (CMV) infection — a virus which can cause childhood deafness.
What they said: The firm's CEO and president Dig Howitt said: "Cochlear implant trading conditions have been strong across the first half, with units growing 14%. We have maintained the market share gains made in FY23 and market growth has continued to be robust across both developed and emerging markets, as well as all age segments — children, adults and seniors".
The source: ASX announcement
