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Cochlear upgrades FY24 earnings guidance as shares surge 5pc

ASX 200, ASX News, Health Care
ASX:COH      MCAP $21.63B
08 February 2024 15:31 (AEST)

ASX200 healthcare stock Cochlear (ASX:COH) is upgrading its earnings guidance following a better-than-expected growth of its ear implant for the half-year ending December 31, 2023.

The company’s underlying net profit guidance for the 2024 financial year has been increased to $385-400 million, a 26-31 per cent increase on FY23.

The upgrade reflects an eight per cent increase above the midpoint of the prior guidance of $355-375 million advised in August 2023.

First-half sales revenue increased 25 per cent to $1.11 million, carrying an underlying net profit of $192 million.

“Cochlear implant trading conditions have been strong across the first half, with units growing 14 per cent,” COH CEO President Dig Howitt said.

“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 key change to the company’s expectations means it has achieved 10-15 per cent growth in our cochlear implant units for FY24, compared to the high single-digit growth expected in August.

These results are based on management accounts, which means they are yet to be subject to an audit review and Board approval.

COH shares last traded at $305.93.

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