Cochlear’s 2018-19 results topped market expectations, Newcrest has ridden the rising gold price higher, Domain has cut its full-year dividend while investors have given oOh! Media’s 2019 profit downgrade a big thumbs down.
Cochlear shares dived more than 10% yesterday (Tuesday) after the company reported a higher interim result and dividend, but said it had lost market share in two of its biggest markets - the United States and Germany
The 2019 AGM has reaffirmed FY20 net profit guidance of $290-300m, which represents 9-13% growth on FY19. Morgan Stanley notes growth is expected to continue across the business and investment is aimed at building awareness.
Citi expects net profit in FY19 of $275m, at the top end of guidance. The broker suspects market growth in North America will be lower than the prior corresponding period as Cochlear may have been more focused on protecting market share.
Cochlear hosted an investor day on Friday at which no financial updates were provided. The company highlighted the opportunity presented by growth in adult uptake in developed markets along with new initiatives.
The company has launched its new 3.0 Tesla MRI implant which allows users to undergo these MRIs without surgery. Credit Suisse expects the company will receive limited benefit from the new product in the second half.
Deutsche Bank analysts, already among the more bearish when it comes to assessing the outlook for Cochlear, have returned from the 2019 American Audiology Annual meeting with the message that, yes indeed, competition is heating up in the global market for hearing aids.