Australia's Cochlear tanks on weaker-than-expected profit outlook

Cochlear

15/08/2024 02:15

Aug 15 (Reuters) - Shares in Australia's Cochlear
 COH.AX  sank more than 8% on Thursday, after the hearing
implants maker forecast profit for the current fiscal that fell
short of market expectations.
    Cochlear is expecting underlying net profit between A$410
million and A$430 million ($270.15 million and $283.33 million)
for fiscal year 2025, below the Visible Alpha consensus of
A$451.2 million.
    Its underlying earnings jumped 27% to A$386.6 million for
the financial year ended June 30, helped by robust performance
across its implants, services and acoustics divisions.
    However, it also fell short of Visible Alpha consensus of
A$400.2 million.
    Shares in Cochlear, among the priciest in Australia, slumped
8.1% to A$310.260, marking their worst day since late-March
2020.
    The stock fell to its lowest since early February this year,
and was among the top five losers in the benchmark index
 .AXJO , which was trading around 0.6% higher.
    "(COH) stock going to be pressured today given miss to
street and more cautious 6-11% NPAT growth outlook," Macquarie
analysts wrote in a note.
    Cochlear announced a final dividend of A$2.10 per share, and
also approved the buyback of up to A$75 million over the next
one year.
    The firm had halted its share buyback programme in February,
citing a high interest rate environment. 
    

($1 = 1.5177 Australian dollars)
    

 (Reporting by Sneha Kumar and Sameer Manekar in Bengaluru;
Editing by Rashmi Aich)
 ((Sneha.Kumar@thomsonreuters.com;))