The Cochlear Limited (ASX: COH) share price has dropped lower on Tuesday following the release of its AGM update.
In morning trade the hearing solutions company's shares are down 3% to $207.89.
What was in Cochlear's update?
Much of today's annual general meeting update was dedicated to its performance in FY 2019 and its strategic priorities.
In respect to the latter, Cochlear's first priority is to retain its market leadership position. It intends to achieve this through market-leading technology and a world-class customer experience.
Next on the list of its priorities is growing the hearing implant market. Management aims to do this by growing awareness, increasing market access, and through clinical evidence.
Its final priority is to deliver consistent revenue and earnings growth. This will be achieved by investing in growth, operational improvement, and by leveraging its strong financial position.
FY 2020 guidance.
Cochlear also provided an update on its expectations for the new financial year.
When it released its full year results it revealed that it expects to deliver a reported net profit of $290 million to $300 million this year. This will be a 9% to 13% increase on the underlying net profit achieved in FY 2019.
No change has been made to this guidance, which may have disappointed some investors that were betting on an upgrade today.
Management said: "Growth is expected to broadly continue across the business in FY20, underpinned by the continuing investments made in product development and market growth initiatives over the previous few years."
"We will continue to invest in activities aimed at building awareness and market access, with the objective to deliver consistent revenue and earnings growth over the long-term. Through disciplined investment, we are targeting to maintain the net profit margin, reinvesting any efficiency gains, currency or tax benefits into market growth activities," it added.
Also on the move in the healthcare sector today are the shares of Medical Developments International Ltd (ASX: MVP) and Volpara Health Technologies Ltd (ASX: VHT).
Medical Developments International's shares have stormed higher after a positive Penthrox update, whereas Volpara is notably higher following the release of a quarterly update.
