The Cochlear Ltd (ASX: COH) share price is tumbling in late morning trade, down 7.4% to $237.08 per share.
This comes despite the ASX healthcare company meeting guidance in its full year results for the 2021 financial year, released earlier today. And despite a boost to its dividend payout.
What dividend did Cochlear announce?
The Cochlear share price is falling even though the company boosted its full-year dividend by 59%, to $2.55.
Management was able to return some cash to investors’ pockets after Cochlear saw sales revenue grow 10% in FY21, reaching $1.49 billion. Underlying net profit of $236.7 million was also up 54% year-on-year. And profits beat guidance, which management had forecast would come in the range of $225–245 million.
That, however, appears not to have satisfied many investors, with Cochlear dropping heavily even as the S&P/ASX 200 Index (ASX: XJO) edges up 0.3%.
So, why is the Cochlear share price tumbling?
My Foolish colleague James Mickleboro may have nailed the answer to that question before markets opened today, writing:
While Cochlear’s profit was within its guidance range, it appears to have fallen short of the market’s expectations. According to CommSec, the analyst consensus was a net profit after tax of $245.5 million. This could potentially weigh on the Cochlear share price today.
It’s not uncommon for investors to punish stocks that fall short of consensus expectations.
Cochlear share price snapshot
Even with today’s large drop, the Cochlear share price remains a standout performer in 2021, up 28% year-to-date. That’s more than double the gains posted by the ASX 200 this calendar year.