Hearing implant maker Cochlear may have beaten analyst forecasts with a 16% rise in first-half net profit on an 8% rise in sales, but it couldn’t win over a suddenly sceptical market yesterday.
The shares jumped by more than 1.4%, or $1.10, to $78.60, before losing the lot in the trading from around 11 am to close down $1.32, or 1.7%, at $76.18.
The market ignored the better result, positive outlook and an 11% rise in interim dividend to $1.05 a share from 95c in the first half of last financial year.
The rise in sales and profits came mostly from higher sales of its new Nucleus 5 device.
Cochlear said net profit rose to $87.2 million in the six months to December 31, from $75.25 million a year earlier.
The result beat analyst expectations for earnings of $83.6 million, according to the average of three forecasts. But other analysts reckoned the result fell short of their guesses.
Stripping out the impact of the rise in the Australian dollar to a 28-year high, sales rose 17% from a year-ago.
"Total revenues were $377.1 million, up 8%. Sales, excluding FX contracts, were $355.2 million, up 5%. In constant currency (that is restating F10 at F11 FX rates), H1 F11 sales were up 17% compared to H1 F10," the company said.
"Cochlear implant (CI) sales, which included accessories and sound processor upgrades, were $309.6 million, up 16% in constant currency (up 7% in reported currency).
"Cochlear implant unit sales increased 20% to 11,765 units. Over two thirds of implants sold in the first half of F11 were the latest generation of implants, Nucleus 5. Emerging markets comprised approximately one third of cochlear implant unit sales."
The company said its outlook remains positive, with unmet demand in emerging and developed markets. Perhaps investors wanted some figures for the full year earnings estimate.
There was a better reaction from investors to the short update from CGA Mining, the dual listed gold miner now with an operating mine in The Philippines.
It told the ASX yesterday that first half net profit from continuing operations will be 400% higher than in the prior first half.
CGA said the figure would come in at $39.019 million for the six months to December 31, up from $7.639 million for the corresponding period of 2009-10.
Cash flow from operations (excluding taxes and capital) more than doubled to $46.952 million from $19.759 million in the prior corresponding period.
Its final audited half year financial statements will be released later in the week, CGA said in the statement.
That saw the shares jump 11%, or 35c, to $3.35 by the close.
CGA is listed on the main board of the Toronto Stock Exchange and ASX.
The Masbate Gold Project in the Philippines was successfully constructed with first gold poured mid 2009.
The project has a total indicated resource base of 4.55M ounces of gold, total inferred resource base of 3.22M ounces of gold and a probable reserve of 3.03M ounces of gold. It is currently forecast to produce over 200,000 ounces per annum.
Fertiliser and explosives supplier Incitec Pivot (IPL) has further updated the market on the impact of the recent floods on Australia’s east coast and Cyclone Yasi last week.
The company warned last month that the floods in December and early January would have an impact and yesterday it provided more detail saying the floods and the cyclone are expected to wipe about $36 million from earnings.
"The cyclone followed two months of flooding in Queensland, NSW and Victoria, the combined impact of which affected sales for the Dyno Nobel Asia-Pacific explosives business as well as for Incitec Pivot fertilisers," Incitec Pivot said in the statement.
"In addition, while heavy rain impacted the construction schedule on the ammonium nitrate project at Moranbah (in Queensland), the project remains on track for beneficial production by 31 March, 2012."
Incitec Pivot said Cyclone Yasi in north Queensland had interrupted production at the fertiliser plant at Phosphate Hill and the associated acid plant at Mt Isa.
The Phosphate Hill and Mt Isa plants have since returned to normal operation.
Minor damage was caused to port facilities at Townsville, and some fertiliser stored at Townsville was water-damaged. The cyclone also caused minor damage to a fertilisers distribution centre at Townsville. These were now back in operation.
IPL shares fell 4c to $4.48.
And the board of financial management software provider Reckon has rewarded shareholders with a small lift in dividend and a buyback after reporting a 27% increase in profit for the year to December.
The company told the ASX yesterday that net profit was $17.2 million in the 12 months to December 31, up from $13.6 million in 2009.
Operating revenue rose 6% to $90.1 million for the year.
As a result final dividend was lifted to 4.5c (4c in 2009), making a total of 8c for the year, up from 7c for the 2009 year.
The company has agreed to buy-back up to 10% of its shares on-market from February 24.
The news saw the shares end up 7c at $2.48, which i
