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Cooper Companies (COO) to Post Q2 Earnings: What's in Store?

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The Cooper Companies, Inc.’s (COO - Free Report) second-quarter fiscal 2021 results are scheduled to release on Jun 3, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 14.4%.

Q2 Estimates

For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $690.7 million, indicating growth of 31.6% from the year-ago quarter. The same for earnings stands at $3.12 per share, suggesting growth of 106.6% from the year-ago reported figure.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both the segments displayed strength in the fiscal first quarter and we expect this momentum to have continued in the fiscal second quarter.

With respect to the CVI segment, solid performance across the company’s daily silicone hydrogel portfolio and Biofinity franchise along with strength in torics and multifocals is likely to have contributed to the improvement.

In fact, for fiscal 2021, CVI revenues are estimated at $2.09-$2.12 billion (up 9% to 11% cc), while CSI revenues are expected at $710-$725 million (up 19% to 22% cc). Consequently, we expect to see this strength to be reflected in the soon-to-be-reported quarter results.

The Cooper Companies, Inc. Price and EPS Surprise

The Cooper Companies, Inc. Price and EPS Surprise

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

With respect to MiSight 1-day contact lens, per the fiscal-first quarter 2021 earnings call, the company witnessed 82% growth in revenues to $3 million. Consequently, the fiscal second quarter is likely to have witnessed an encouraging performance in the to-be-reported quarter. The substantial increase in interest from optometrists as they look for value-added ways to boost patient flow as their practices reopen is likely to have led to the uptick.

With respect to product launches, the company has been very active as evident from MyDay sphere and toric introduction or relaunch in several markets worldwide.

Further, Biofinity toric, multifocal and Clarity’s extended daily toric range have been continuing their successful launches. Additionally, the company’s extended toric range for Clariti has been released giving it the widest parameter range available in the market today for daily silicone torics. Moreover, the company has made substantial progress on MyDay manufacturing and is now able to supply products to markets where it was previously pulled back from.

Coming to CSI, the segment is focused on making products in several other areas of the business, including development and transferring of IVF production into the company’s global manufacturing facility in Costa Rica. More importantly, the company’s manufacturing and distribution teams kept the products available and shipping when several competitors were found struggling, thereby providing it the opportunity for share gains.

These developments are likely to have enhanced the fiscal second-quarter performance.

Cooper Companies has been witnessing higher contact lenses demand, courtesy of the global transition to daily contact lenses by customers of late. Moreover, the company has been making advancements in customized product offerings, which are likely to have contributed to the fiscal second-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see below.

Earnings ESP: Cooper Companies has an Earnings ESP of -1.28%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2.

Peer Releases

A few other top-ranked stocks in the broader medical space that have announced their quarterly results are Illumina, Inc. (ILMN - Free Report) , Amedisys, Inc. (AMED - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina reported first-quarter 2021 adjusted earnings per share (EPS) of $1.89, which surpassed the Zacks Consensus Estimate by 38.9%. Revenues of $1.09 billion outpaced the Zacks Consensus Estimate of $1.08 billion.

Amedisys reported first-quarter 2020 adjusted EPS of $1.54, which beat the Zacks Consensus Estimate by 7.7%.

HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion exceeded the Zacks Consensus Estimate by 2.2%.

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