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Cooper Companies (COO) Q4 Earnings & Revenues Top Estimates

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The Cooper Companies, Inc. (COO - Free Report) reported fourth-quarter fiscal 2020 adjusted earnings per share (EPS) of $3.16, which beat the Zacks Consensus Estimate of $3.11 by 1.6%. However, the bottom line declined 4.2% on a year-over-year basis.

For fiscal 2020, the company delivered adjusted EPS of $9.64, which outpaced the consensus mark by 0.6% but declined 21.9% from fiscal 2019.

Revenue Details

Revenues of this Zacks Rank #3 (Hold) company were $681.6 million for the quarter, surpassing the Zacks Consensus Estimate by 0.4%. However, the top line fell 1.4% from the year-ago quarter.

For fiscal 2020, the company reported revenues of $2.43 billion, down 8.4% from the previous year, while meeting the consensus mark.

Fiscal Q4 Segment Details

CooperVision (CVI)

The segment’s revenues totaled $506.3 million, down 3% at constant currency (cc) and 1% on a reported basis.

Per management, the segment saw a decline in revenues from Single-use sphere lenses (29% of CVI), reflecting a decrease of 6% at cc and 4% on a reported basis. Single-use sphere lenses revenues totaled $148.3 million.

Toric (32% of CVI) revenues amounted to $161.9 million, up 2% at cc and 4% on a reported basis.

Multifocal (11% of CVI) generated revenues of $53.2 million, remaining flat at cc, while up 3% on a reported basis.

Non-single-use sphere (28% of CVI) revenues amounted to $142.9 million, down 4% at cc and 3% from the year-ago quarter.

Geographically, the segment witnessed an improvement in revenues in the Americas (41% of CVI), both up 3% at cc and on a reported basis to $204.8 million.
EMEA revenues (36% of CVI) totaled $183.3 million, down 6% at cc and 1% from the prior-year quarter.

Asia Pacific sales (23% of CVI) declined 8% at cc and 5% year over year to $118.2 million.

The Cooper Companies, Inc. Price, Consensus and EPS Surprise

 

The Cooper Companies, Inc. Price, Consensus and EPS Surprise

The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote

CooperSurgical (CSI)

The segment posted revenues of $175.3 million, down 4% at cc and 4% on a year-over-year basis.

Sub-segment Office and Surgical products (62% of CSI) accounted for $109.1 million in revenues, down 5% at cc and on a year-over-year basis.

Fertility (38% of CSI) revenues were $66.2 million, down 2% year over year and at cc.

Margin Analysis

In the fiscal fourth quarter, gross profit was $424 million, down 6.8% year over year.  Adjusted gross margin was 68% of net revenues, up 100 basis points (bps) year over year.

Operating income in the quarter totaled $100.1 million, which plunged 31.7% year over year. Adjused operating margin was 27%, down 100 bps from the prior-year quarter.

Financial Position

The company exited the quarter with cash and cash equivalents of $115.9 million, down from $127.4 million on a sequential basis.

Free cash flow amounted to $111.3 million in the quarter under review.

Guidance

Given the uncertainty with respect to the extent and duration resulting from the ongoing COVID-19 pandemic, Cooper Companies is unable to provide fiscal 2021 guidance. However, the company has given its fiscal first-quarter 2021 guidance below.

For first-quarter fiscal 2021, the company projects total revenues between $642 million and $670 million (down 3% to up 2% on cc basis). The Zacks Consensus Estimate for the same is pegged at $668.5 million.

While CVI revenues are estimated to be $482-$502 million (down 3% to up 1% cc), CSI revenues are expected to be $160-$168 million (down 1% to up 4% cc).

Adjusted EPS is anticipated to be between $2.66 and $2.86. The Zacks Consensus Estimate for the same is pegged at $3.00.

Wrapping Up

Cooper Companies exited the fiscal fourth quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. Per management, the company continues to witness success with its daily silicone hydrogel lenses that makes it one of the leaders in the soft contact lens market. Also, management remains optimistic about its myopia management program, which comprises of MiSight and Ortho K lenses. Moreover, expansion in gross margin is a positive.

However, the company witnessed weak performance across its core CVI and CSI units due to the impact of the COVID-19 pandemic. Also, the contraction in operating margin raises a concern. Further, the company’s top line declined on a year-over-year basis in the quarter. Non-single-use sphere sales were soft, and CVI revenues declined in EMEA and APAC.

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space, which have already announced their quarterly results, are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.

Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.

Bio-Rad Laboratories reported third-quarter 2020 adjusted EPS of $3, which beat the Zacks Consensus Estimate by 62.2%. Revenues of $647.3 million surpassed the consensus mark by 14.5%.

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