COH –13.73%: Delivered half-year results that were only a slight miss to analyst expectations on the profit and revenue line, though disappointed as management guided full-year profit to the lower end of its previously announced range of $410m-$430m.
- Sales revenue $1.17 billion (+5.1% yoy), estimate $1.2 billion
- Services revenue $305 million (-13% yoy), estimate $335.3 million
- Underlying profit $205.5 million (+7.1% yoy), estimate $205.8 million
Cochlear implant sales grew 12% for the half while services revenue declined 13% due to cost-of-living pressures in the U.S. Management are expecting 10% implant growth in FY25, though this will be offset by higher cloud-related investment of +$40m.
The company is preparing for the mid-2025 launch of its next-generation implant, pending regulatory approvals, though given the slowdown in uptake of its latest Nucleus-8 product, it is unlikely that this provides meaningful improvement to sales until FY26 which begs the question of where revenue/earnings growth will come from next.
