Cochlear’s result right on expectations
Cochlear (COH) +3.93%; The hearing aid manufacturer had a reasonable result despite a slowdown in sales over FY19. Cochlear still managed to add 13% to net profit in the year, however the bulk of the profit was generated by increases to revaluation of innovation investments. Guidance was solid, with consensus right in the middle of their FY20 profit range of $290m to $300m. Emerging markets provided the biggest drag on sales growth, while market share was lost in the US and Germany following product launches from competitors. It wasn’t a bad result, however I struggle to justify paying a PE in the high 30s for a company seeing sales declining.
Cochlear (COH) Chart
