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What's in Store for Cooper Companies' (COO) Q3 Earnings?
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The Cooper Companies’ (COO - Free Report) third-quarter fiscal 2018 results are scheduled to release on Aug 30, after market close.
While a favorable show by the core CooperVision (CVI) business unit is likely to drive the quarterly results, a competitive industry might prove detrimental.
Earnings Surprise History
Notably, Cooper pulled off a positive average earnings surprise of 3.6% in the trailing four quarters. In the last reported quarter, the company reported adjusted earnings per share of $2.86, which beat the Zacks Consensus Estimate by 1.1% and increased 14.4% on a year-over-year basis.
The company reported revenues worth $631.3 million, which surpassed the Zacks Consensus Estimate by 0.8%. Revenues improved 20.8% from the prior-year quarter and 5% on a pro forma basis (defined as constant exchange rate and including acquisitions in both periods).
Which Way Are Estimates Treading?
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $654.2 million, reflecting year-over-year growth of 17.7%. The same for earnings is pinned at $3.08, showing year-over-year growth of 16.7%.
The CVI segment is a significant contributor to Cooper’s revenues, accounting for 74.1% of the top line in the last reported quarter.
Per management, robust demand for daily silicone hydrogel lenses continues to drive the segment. In particular, Cooper’s daily silicone hydrogel portfolio of Clariti and MyDay have been strong performers.
CVI also delivered solid gains in the United States, EMEA and APAC regions with 6%, 4% and 11% growth, respectively, on a pro forma basis. Management expects the U.S. momentum to continue in the second half of fiscal 2018 on growth in the upper-single digits.
For the quarter to be reported, the Zacks Consensus Estimate for the segment’s revenues stands at $487 million, up 11.4% from the year-ago quarter.
Coming to the sub-segments, the Zacks Consensus Estimate for Non Single-Use Sphere lenses is pegged at $147 million, up 8.1% year over year. The same for Single-Use Sphere lenses is pegged at $134 million, up 15.5% year over year.
Meanwhile, Cooper’s Specialty lenses portfolio is likely to drive fiscal third-quarter results. The Zacks Consensus Estimate for Cooper’s Multifocal lenses revenues stands at $50 million, showing a rise of 6.8% year over year. The same for Toric lenses is pegged at $159 million, reflecting 15.2% improvement on a year-over-year basis.
Other Factors at Play
CooperSurgical Unit
CooperSurgical (CSI) sells a variety of medical devices and surgical instruments. In the last reported quarter, the segment contributed 25.9% to Cooper’s net revenues.
For the quarter to be reported, the Zacks Consensus Estimate for the segment’s revenues is pegged at $169 million, up an impressive 42% from the prior-year quarter.
Sub-segment Fertility accounted for 40% of CSI revenues in the last reported quarter. For the quarter to be reported, the Zacks Consensus Estimate for revenues is pinned at $73 million, up 10.6% year over year.
The Zacks Consensus Estimate for the Office and Surgical Products revenues stands at $96 million, up a whopping 81.1% year over year.
FY18 View
Cooper updated its revenue guidance for fiscal 2018.
The company now expects fiscal 2018 revenues within $2,515-$2,550 million compared with the previous range of $2,510-$2,560 million. Notably, the Zacks Consensus Estimate for the same is pegged at $2.53 billion, within the guided range.
Adjusted earnings per share are anticipated between $11.70 and $11.90. The Zacks Consensus Estimate for earnings is pinned at $11.82, within the projected range.
Headwinds
In the last reported quarter, Cooper witnessed declines in its legacy Avaira, which partially offset growth.In fact, the company is currently transitioning users from Avaira to Vitality, which is likely to have ended by the third quarter.
Moreover, Cooper operates in a highly competitive contact lens industry. Both the business segments face considerable competition from peers. CooperVision’s primary competitors in the Spherical, Toric and Multifocal lens categories are Johnson & Johnson Vision Care, CIBA Vision owned by Novartis AG, and Valeant Pharmaceuticals’ Bausch & Lomb.
What Does Our Model Predict?
Our quantitative model does not show a beat for Cooper this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Earnings ESP: The Earnings ESP for Cooper is -0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cooper carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few stocks worth considering as they have the right combination of elements to post an earnings beat this quarter. Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of + 2.41% and a Zacks Rank #2.
Ross Stores, Inc. (ROST - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What's in Store for Cooper Companies' (COO) Q3 Earnings?
The Cooper Companies’ (COO - Free Report) third-quarter fiscal 2018 results are scheduled to release on Aug 30, after market close.
While a favorable show by the core CooperVision (CVI) business unit is likely to drive the quarterly results, a competitive industry might prove detrimental.
Earnings Surprise History
Notably, Cooper pulled off a positive average earnings surprise of 3.6% in the trailing four quarters. In the last reported quarter, the company reported adjusted earnings per share of $2.86, which beat the Zacks Consensus Estimate by 1.1% and increased 14.4% on a year-over-year basis.
The company reported revenues worth $631.3 million, which surpassed the Zacks Consensus Estimate by 0.8%. Revenues improved 20.8% from the prior-year quarter and 5% on a pro forma basis (defined as constant exchange rate and including acquisitions in both periods).
Which Way Are Estimates Treading?
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $654.2 million, reflecting year-over-year growth of 17.7%. The same for earnings is pinned at $3.08, showing year-over-year growth of 16.7%.
The Cooper Companies, Inc. Price and EPS Surprise
The Cooper Companies, Inc. Price and EPS Surprise | The Cooper Companies, Inc. Quote
CooperVision Likely to Drive Q3
The CVI segment is a significant contributor to Cooper’s revenues, accounting for 74.1% of the top line in the last reported quarter.
Per management, robust demand for daily silicone hydrogel lenses continues to drive the segment. In particular, Cooper’s daily silicone hydrogel portfolio of Clariti and MyDay have been strong performers.
CVI also delivered solid gains in the United States, EMEA and APAC regions with 6%, 4% and 11% growth, respectively, on a pro forma basis. Management expects the U.S. momentum to continue in the second half of fiscal 2018 on growth in the upper-single digits.
For the quarter to be reported, the Zacks Consensus Estimate for the segment’s revenues stands at $487 million, up 11.4% from the year-ago quarter.
Coming to the sub-segments, the Zacks Consensus Estimate for Non Single-Use Sphere lenses is pegged at $147 million, up 8.1% year over year. The same for Single-Use Sphere lenses is pegged at $134 million, up 15.5% year over year.
Meanwhile, Cooper’s Specialty lenses portfolio is likely to drive fiscal third-quarter results. The Zacks Consensus Estimate for Cooper’s Multifocal lenses revenues stands at $50 million, showing a rise of 6.8% year over year. The same for Toric lenses is pegged at $159 million, reflecting 15.2% improvement on a year-over-year basis.
Other Factors at Play
CooperSurgical Unit
CooperSurgical (CSI) sells a variety of medical devices and surgical instruments. In the last reported quarter, the segment contributed 25.9% to Cooper’s net revenues.
For the quarter to be reported, the Zacks Consensus Estimate for the segment’s revenues is pegged at $169 million, up an impressive 42% from the prior-year quarter.
Sub-segment Fertility accounted for 40% of CSI revenues in the last reported quarter. For the quarter to be reported, the Zacks Consensus Estimate for revenues is pinned at $73 million, up 10.6% year over year.
The Zacks Consensus Estimate for the Office and Surgical Products revenues stands at $96 million, up a whopping 81.1% year over year.
FY18 View
Cooper updated its revenue guidance for fiscal 2018.
The company now expects fiscal 2018 revenues within $2,515-$2,550 million compared with the previous range of $2,510-$2,560 million. Notably, the Zacks Consensus Estimate for the same is pegged at $2.53 billion, within the guided range.
Adjusted earnings per share are anticipated between $11.70 and $11.90. The Zacks Consensus Estimate for earnings is pinned at $11.82, within the projected range.
Headwinds
In the last reported quarter, Cooper witnessed declines in its legacy Avaira, which partially offset growth.In fact, the company is currently transitioning users from Avaira to Vitality, which is likely to have ended by the third quarter.
Moreover, Cooper operates in a highly competitive contact lens industry. Both the business segments face considerable competition from peers. CooperVision’s primary competitors in the Spherical, Toric and Multifocal lens categories are Johnson & Johnson Vision Care, CIBA Vision owned by Novartis AG, and Valeant Pharmaceuticals’ Bausch & Lomb.
What Does Our Model Predict?
Our quantitative model does not show a beat for Cooper this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Earnings ESP: The Earnings ESP for Cooper is -0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cooper carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of + 2.41% and a Zacks Rank #2.
Ross Stores, Inc. (ROST - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>