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Here's Why You Should Hold Cooper Companies (COO) Stock Now
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The Cooper Companies, Inc. (COO - Free Report) is expected to benefit from its fiscal fourth-quarter results and a strong CooperVision (CVI) unit. However, sluggishness in the Fertility unit might mar prospects.
The stock currently has a Zacks Rank #3 (Hold).
Price Performance
Over the past year, shares of Cooper have rallied 9.1% against the industry’s decline of 9.9%. The current level is also higher than the S&P 500 index’s 5.4% fall.
What’s Deterring the Stock?
In the recently-reported fiscal fourth quarter, Cooper’s Fertility unit saw sluggishness owing to channel inventory contraction associated with the LifeGlobal integration. Notably, sales at the unit was $60.9 million, down 9% year over year and 6% at pro forma. Moreover, genomics business within Fertility declined in the quarter.
Additionally, foreign currency fluctuations continue to plague the company. In the fiscal fourth quarter, Cooper incurred a loss of $1.7 million owing to negative currency movement.
Why Should You Retain Cooper?
Cooper reported fiscal 2018 earnings of $2.87 per share, which increased 8.3% on a year-over-year basis.
The company reported revenues worth $651.5 million. On a year-over-year basis, revenues improved 16%.
Cooper’s core CVI segment garnered revenues worth $480.6 million, up 10% on a pro forma basis and 9% year over year. Per management, the segment saw a noticeable uptick in the daily silicone hydrogel lenses, showing pro forma growth of 50% driven by accelerating growth in both Clariti and MyDay.
Additionally, the segment recorded strong growth across Americas, EMEA and Asia Pacific regions. Reflective of these, management expects CVI to grow 6-8% at pro forma in fiscal 2019. Per management, overseas growth was driven by clariti and MyDay strength and solid results from Biofinity and Avaira Vitality.
Cooper expects fiscal 2019 revenues within $2,600-$2,660 million. Notably, revenues from CVI are expected between $1,940 million and $1,980 million. The same from CooperSurgical (CSI) are anticipated within $660-$680 million.
The company also expects adjusted earnings per share between $11.30 and $11.70.
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at $2.51 cents, reflecting a year-over-year decline of 10%. The same for revenues is pinned at $618.11 million, showing an increase of 4.8% year over year.
For fiscal 2019, the Zacks Consensus Estimate for revenues is at $2.64 billion, reflecting a rise of 4.3% year over year. The same for earnings stands at $11.65, showing growth of 1.3% year over year.
Key Picks
Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , OPKO Health, Inc. (OPK - Free Report) and Surmodics (SRDX - Free Report) .
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.
Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Here's Why You Should Hold Cooper Companies (COO) Stock Now
The Cooper Companies, Inc. (COO - Free Report) is expected to benefit from its fiscal fourth-quarter results and a strong CooperVision (CVI) unit. However, sluggishness in the Fertility unit might mar prospects.
The stock currently has a Zacks Rank #3 (Hold).
Price Performance
Over the past year, shares of Cooper have rallied 9.1% against the industry’s decline of 9.9%. The current level is also higher than the S&P 500 index’s 5.4% fall.
What’s Deterring the Stock?
In the recently-reported fiscal fourth quarter, Cooper’s Fertility unit saw sluggishness owing to channel inventory contraction associated with the LifeGlobal integration. Notably, sales at the unit was $60.9 million, down 9% year over year and 6% at pro forma. Moreover, genomics business within Fertility declined in the quarter.
Additionally, foreign currency fluctuations continue to plague the company. In the fiscal fourth quarter, Cooper incurred a loss of $1.7 million owing to negative currency movement.
Why Should You Retain Cooper?
Cooper reported fiscal 2018 earnings of $2.87 per share, which increased 8.3% on a year-over-year basis.
The company reported revenues worth $651.5 million. On a year-over-year basis, revenues improved 16%.
Cooper’s core CVI segment garnered revenues worth $480.6 million, up 10% on a pro forma basis and 9% year over year. Per management, the segment saw a noticeable uptick in the daily silicone hydrogel lenses, showing pro forma growth of 50% driven by accelerating growth in both Clariti and MyDay.
Additionally, the segment recorded strong growth across Americas, EMEA and Asia Pacific regions. Reflective of these, management expects CVI to grow 6-8% at pro forma in fiscal 2019. Per management, overseas growth was driven by clariti and MyDay strength and solid results from Biofinity and Avaira Vitality.
Cooper expects fiscal 2019 revenues within $2,600-$2,660 million. Notably, revenues from CVI are expected between $1,940 million and $1,980 million. The same from CooperSurgical (CSI) are anticipated within $660-$680 million.
The company also expects adjusted earnings per share between $11.30 and $11.70.
The Cooper Companies, Inc. Price and Consensus
The Cooper Companies, Inc. Price and Consensus | The Cooper Companies, Inc. Quote
Which Way Are Estimates Headed?
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at $2.51 cents, reflecting a year-over-year decline of 10%. The same for revenues is pinned at $618.11 million, showing an increase of 4.8% year over year.
For fiscal 2019, the Zacks Consensus Estimate for revenues is at $2.64 billion, reflecting a rise of 4.3% year over year. The same for earnings stands at $11.65, showing growth of 1.3% year over year.
Key Picks
Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , OPKO Health, Inc. (OPK - Free Report) and Surmodics (SRDX - Free Report) .
Integer Holdings, with a Zacks Rank #2 (Buy), has an earnings growth rate of 31.2% for the next quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.
Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>