Cochlear Limited Just Missed EPS By 7.4%: Here's What Analysts Think Will Happen Next

Cochlear Limited (ASX:COH) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to AU$313 in the week after its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of AU$2.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.4% to hit AU$5.45 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Cochlear

Following the latest results, Cochlear's 15 analysts are now forecasting revenues of AU$2.46b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 20% to AU$6.53. In the lead-up to this report, the analysts had been modelling revenues of AU$2.49b and earnings per share (EPS) of AU$6.65 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at AU$285. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cochlear, with the most bullish analyst valuing it at AU$365 and the most bearish at AU$225 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Cochlear'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while Cochlear's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at AU$285, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cochlear analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Cochlear's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.