Cochlear (ASX: COH) has reported its first-half results for FY20. We take a look at the company's headline figures, key commentary and guidance outlook, plus review the share market's reaction across the trading day.

Headline result

Cochlear has reported a 9% increase in sales revenue across its operations, reaching $777.6m.Across HY20, the business recorded a 23% rise in reported net profit, including the effects of a one-off $25m gain from the revaluation of its "innovation fund investments".An interim dividend of $1.60 per share has been declared. The ex-dividend date will be 24th March, 2020. The record date will be the 25th March, 2020.Cochlear shares traded lower by 3.4% to $226.62. While the business advised the market of its guidance downgrade last week, the extent of this may not have been entirely factored in. On the back of several broker upgrades, however, and some news concerning issues with one of its competitors, the company's share price has raced higher as of Wednesday morning.

Key commentary

While Cochlear reported a 9% increase in sales revenue, in constant currency terms this was slightly lower, at 5%. Revenue growth was underpinned by the company's implant division, where sales rose 14%. The bulk of growth for the implant segment is coming from emerging markets like the Middle East and China, where volume grew 20%, but the US also recorded positive sales momentum. Western Europe remains a "challenging" growth market for the company amid funding caps and restrictive indications.The services segment recorded a slower rate of revenue growth of 9% as the company already has a high level of penetration in developed markets.Cochlear's acoustics segment was a drag on group performance, with sales sliding 9%. This result was lower than the company had anticipated, impacted by a slowing market and competitor product launches.As noted above, the company's reported net profit benefitted from the inclusion of a $25m one-off non-cash after-tax gain. This was due to a revaluation in the company's innovation fund investments. If this gain is stripped from the result, and the underlying net profit is examined, Cochlear has posted flat growth compared with FY19. The company has cited the impact of "foreign currency contract losses" as a key impediment offsetting operating profit growth.

Guidance outlook

Cochlear expects that the Coronavirus will have an impact on sales within Greater China as hospitals defer surgeries. As such, despite strong growth forecast from Cochlear's implant division, management expects group net profit to grow between 2-9% on FY19's underlying net profit to reach $270-$290m. Earlier this month the company downgraded this guidance from $290-300m.Services revenue is expected to continue growing, but at a moderated rate, and while the company expects its acoustics division to benefit from sales of its new Osia 2 System that began in early 2020, a delay in European regulatory approval will lead to negative growth across the full financial year.