Cochlear shares are diving despite a jump in profit

Christopher Furlong/Getty Images
  • Bionic ear maker Cochlear reported a 10% rise in net profit of $245.8 million.
  • Cochlear implant units were up 8% to 35,260.
  • 2019 net profit guidance of $265 million to $275 million, an 8% to 12% increase.

Shares in Cochlear fell despite a 10% rise in full year net profit to $245.8 million.

A short time ago, the shares were down 5.4% to $188.05.

The result, ahead of guidance of $240 million to $250 million, was on a 9% rise in sales to $1.35 billion.

CEO Dig Howitt says the company continued its strategy of investing to retain market leadership and drive market growth.

“Our market leadership position was enhanced by new product launches and improvements in the service offering to our customers,” he says.

“Market growth continued as awareness, indications and funding grew. And the expansion of direct-to-consumer marketing and focus on sales force expansion and effectiveness continued to support overall growth.”

The implant business grew strongly by 8% to 35,260 units, excluding Chinese Central Government tender units.

Cochlear expects to deliver a 8% to 12% rise in net profit of between $265 million and $275 million.

A final dividend of $1.60 a share, a 14% increase, was declared, taking the full year shareholder payout to $3.00, up 11%.

The 2018 Cochlear results:

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