The earnings call presented a mixed outlook. There were strong performances in Cochlear implants and acoustics, and the company maintained a robust cash position with dividend increases. However, challenges such as declining services revenue, underperformance in emerging markets, and increased cloud investment weigh on the overall sentiment.
Company Guidance
In the call discussing Cochlear Limited's Half Year 2025 results, the company reported a mixed performance with Cochlear implant revenue growth at 13%, Acoustics revenue growth at 22%, and a 12% decline in Services revenue, leading to a net sales increase of 6% in constant currency. The underlying net profit rose by 7% to $206 million, while operating expenses increased by 10%. The gross margin remained in line with targets at 75%, despite anticipated headwinds from the Chengdu site's ramp-up. Cochlear's balance sheet reflected a strong cash position of $383 million, although inventory levels increased by $69.5 million due to upcoming product launches. The company maintained its full-year guidance range but anticipated results at the lower end, influenced by decreased Services revenue and heightened cloud investment, which was increased by $100 million to $250 million to support a final phase of cloud transition. Looking forward, Cochlear expects Cochlear implant unit growth of around 10% for the year, with plans to launch a next-generation Cochlear implant mid-year, pending regulatory approvals.
Strong Cochlear Implant Revenue Growth
Cochlear implant sales revenue grew by 13% with unit growth of 6%. Developed markets saw 6% growth, and there was a notable 10% growth in adults and seniors.
Acoustics Revenue Surge
Acoustics revenue increased by 22%, driven by a 50% increase in Osia system surgeries and continued strong performance of the Baha system.
Robust Cash Position
The company's balance sheet remains strong with $383 million in cash, even after building up inventory ahead of new product launches.
Dividend Increase
The dividend was increased by 8% to $2.15, showing a commitment to shareholder returns.
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Cochlear Limited (CHEOF) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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CHEOF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Feb 14, 2025
$193.41
$166.25
-14.04%
Aug 14, 2024
$235.10
$210.26
-10.57%
Aug 14, 2023
$151.37
$161.71
+6.83%
Feb 14, 2023
$143.66
$157.89
+9.91%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Cochlear Limited (CHEOF) report earnings?
Cochlear Limited (CHEOF) is schdueled to report earning on Aug 14, 2025, TBA Not Confirmed.
What is Cochlear Limited (CHEOF) earnings time?
Cochlear Limited (CHEOF) earnings time is at Aug 14, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
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