Stock of the day: Cochlear Limited
Cochlear posts a 27% increase in net profit for FY24, but shares drop 7% as market expectations fall short. Analysts suggest patience as further downside is possible.
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This video was created on 15 August for IG audiences by ausbiz.
Stock of the day: Cochlear Limited (ASX: COH)
Cochlear's strong FY24 performance but market disappointment
Cochlear Limited, the renowned hearing aid manufacturer, reported an underlying net profit of $357 million for FY24, marking a 27% increase year-on-year. Sales also rose by 15% to $2.3 billion, and the company declared a $4.10 per share dividend, up 24%.
Despite these solid figures, the market reacted negatively, with shares dropping 7% in morning trade due to concerns over profit growth and slightly lower-than-expected guidance for FY25.
Market reaction and analyst opinions
Cochlear's guidance for FY25 anticipates growth between 6% and 11%, aiming for an underlying profit of $410-$430 million and a 10% sales increase. However, the market's response has been less enthusiastic, with shares falling to pre-COVID levels. Analysts suggest patience, recommending investors wait for stability and broker updates before making new investments.
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