Cochlear 'Quality Franchise' Post-Fiscal 2024 Earnings, Jefferies Says
Cochlear (ASX:COH) is a "quality franchise with an established track record and a dominant global market share" based on an assessment of its financial report for fiscal 2024, investment firm Jefferies said in a Sept. 2 note.
The maker of implantable hearing products reported that its earnings per share for the 12 months ended June 30 rose to AU$5.430, compared with AU$4.561 in the year-ago period.
Statutory net profit was AU$356.8 million, up 18% from AU$300.6 million a year ago.
Total revenue was AU$2.24 billion, up 15% from the year-ago period's AU$1.94 billion.
The company's implant conditions were considered variable during the fiscal period as the first half increased 14%, while the second half grew only 4%, the investment firm said.
Jefferies identified the ongoing rollout of the N8 processor into fiscal 2025 and the result of the launch of the Baha sound processors as catalysts for growth.
Cochlear's underlying net profit is expected to be AU$410 million to AU$430 million for fiscal 2025, compared with Jefferies' estimate of AU$417 million assuming AUD/USD of 0.66.
Jefferies reaffirmed its hold recommendation, with a price target of AU$290.
Price (AUD): $287.59, Change: $-1.16, Percent Change: -0.40%
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