Cochlear (ASX:COH) share price charges higher on AGM update

The Cochlear share price is rising on Tuesday…
The post Cochlear (ASX:COH) share price charges higher on AGM update appeared first on The Motley Fool Australia. –

The Cochlear Limited (ASX: COH) share price has been a solid performer on Tuesday.

In morning trade, the hearing solutions company’s shares are up 2.5% to $220.50.

Why is the Cochlear share price rising today?

Investors have been bidding the Cochlear share price higher today following the release of its annual general meeting update.

As well as giving investors a breakdown on how the company performed in FY 2021, management provided its expectations for the current financial year.

The good news, and potentially why the Cochlear share price is rising today, is that management continues to forecast solid earnings growth in FY 2022.

What is expected in FY 2022?

Cochlear’s CEO and President, Dig Howitt, revealed that the company’s performance during the first quarter of FY 2022 was in line with expectations.

In light of this, Mr Howitt continues to forecast underlying earnings growth of between 12% and 20% this year.

He commented: “We provided earnings guidance for FY22 at the release of our results in August, outlining how we expect to increase underlying net profit by between 12 and 20%, and this continues to be the case.”

“Sales revenue is expected to benefit from market growth, with a continuing recovery in surgery rates across many countries more affected by COVID. We will continue our investment in market growth activities, with the net profit margin expected to remain a little below our longer‐term target of 18%,” he added.

Mr Howitt also provided colour on how both developed and emerging markets are performing.

In respect to the former, he said: “Developed markets are expected to continue to grow in FY22. While hospitals and clinics have adapted to operating during the pandemic, surgery rates continue to be variable across many countries.”

Whereas for the later, he commented: “The rate of recovery in emerging markets has varied. We expect continued improvement but at a slower rate than developed markets, with some countries well down on FY19 levels and not likely to recover fully in FY22.”

Overall, based on the Cochlear share price performance today, this appears to have gone down well with the market.

The post Cochlear (ASX:COH) share price charges higher on AGM update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cochlear right now?

Before you consider Cochlear, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cochlear wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Could the Cochlear (ASX:COH) share price hit $260 by the end of 2021?

Top broker sees 19% upside in the Cochlear (ASX:COH) share price

Analysts name 3 stellar ASX growth shares to buy

Leading brokers name 3 ASX shares to sell today

Why APN Industria, Centuria Industrial, Cochlear, & Perseus Mining are tumbling

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!