Danish Hearing Aid Shares Gain on GN Outlook: Copenhagen Mover
GN Store Nord A/S (GN) and William Demant Holding A/S (WDH), Denmark’s largest hearing aid makers, were today’s biggest gainers among Copenhagen benchmark stocks after GN’s Resound unit raised forecasts for 2013.
GN jumped as much as 6.1 percent and added 5.6 percent to 113.50 kroner at 10:20 a.m. local time, with trading volume at 51 percent of the three-month daily average. WDH rose as much as 1.9 percent. The gains made the two stocks today’s biggest winners in the Nasdaq OMX Copenhagen 20 index (KFX), which added less than 0.1 percent.
GN said today sales at hearing aid unit Resound will grow more than 7 percent this year compared with a previous growth forecast of as little as 4 percent, when excluding the effect of acquisitions. GN, which also owns a headset unit, raised its 2013 operating profit forecast for Resound to more than 825 million kroner ($147 million) from as little 775 million kroner previously, when adjusting for restructuring costs.
“We are positive on the long-term prospects for GN, both in the ReSound hearing aid business, and on the Netcom personal communications business,” Lisa Bedell Clive, an analyst with Sanford C. Bernstein & Co., said in a note today. “Today’s news is a clear positive for the stock,” the analyst said, repeating an outperform recommendation.
Both companies are due to report earnings on Aug. 14. Ballerup, Denmark-based GN has missed analyst net income estimates in 11 of the last 14 quarters, according to data compiled by Bloomberg. WDH, which is based in Smoerum, has missed analyst net income estimates in 12 of its last 13 six-month reports, according to the data.
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