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Cooper Companies (COO) to Post Q3 Earnings: What's in Store?

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

In the last reported quarter, the company delivered an earnings surprise of 8.3%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 17.2%.

Q3 Estimates

For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $724.6 million, indicating an improvement of 25.3% from the year-ago quarter. The same for earnings stands at $3.30 per share, suggesting growth of 44.7% 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 second quarter and we expect this momentum to have continued in the fiscal third quarter.

With respect to the CVI segment, solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals might have contributed to the segment’s performance in the quarter to be reported.

In fact, for fiscal 2021, CVI revenues are projected at $2.11-$2.13 billion (up 11% to 12% at constant exchange rate), while CSI revenues are expected at $745-$755 million (up 25% to 27% at constant exchange rate). This strength is likely to get 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-second quarter 2021 earnings call, the company witnessed revenue growth of 152%. The momentum is likely to have sustained in the fiscal third quarter on the back of interest from optometrists as they look for value-added ways to boost patient flow as their practices reopen.

Cooper Companies is progressing well through inorganic expansion.

Per the fiscal first-quarter 2021 earnings call, the company’s buyout of SightGlass Vision and collaboration with EssilorLuxottica is encouraging. SightGlass Vision has created innovative spectacles to lower the progression of myopia in children, and its joint venture with EssilorLuxottica will leverage the company’s shared expertise and global leadership in myopia management to advance commercialization of these spectacles worldwide.

During the same period, Cooper Companies acquired Embryo Options in order to boost its fertility portfolio by adding a cryo storage software solution, thereby, enabling clinics to automate management of cryopreserved embryos, eggs and sperm.

These developments are likely to have favored the fiscal third-quarter performance.

Cooper Companies has been witnessing higher contact lenses demand, courtesy of the global transition to daily contact lenses by customers of late. The company has been making advancements in customized product offerings, which are likely to have contributed to the fiscal third-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 the case here as you will see below.

Earnings ESP: Cooper Companies has an Earnings ESP of +0.09%. 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 #3.

Peer Releases

Some stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) . While Encompass Health sports a Zacks Rank #1, both West Pharmaceutical and Bio-Rad Laboratories carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.

West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.

Bio-Rad reported second-quarter 2021 adjusted EPS of $3.54, surpassing the Zacks Consensus Estimate by 86.3%. Revenues of $715.9 million beat the Zacks Consensus Estimate by 17.3%.