Sonova Earnings: Sales Gaining Momentum as Full-Year Results Disappoint; Fair Value Estimate Intact

Narrow-moat Sonova reported 7% sales growth for second-half fiscal-year 2023-24 compared with the prior half despite a currency depreciation headwind during the year. The growth rebound aligns with our expectations as the industry gains momentum. We believe that momentum can persist for the coming year but not at the level of Sonova’s overly optimistic outlook, in our view, of 6%-9% sales growth and 7%-11% adjusted EBITA growth in local currencies, or LC. Our fair value estimate of CHF 268 per share is unchanged.