Back to top

Image: Bigstock

Cooper Companies (COO) to Post Q4 Earnings: What's in Store?

Read MoreHide Full Article

The Cooper Companies, Inc.’s (COO - Free Report) fourth-quarter fiscal 2021 results are scheduled to release on Dec 2, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 3.3%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 6.9%.

Q4 Estimates

For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $747.8 million, indicating an improvement of 9.7% from the year-ago quarter. The same for earnings stands at $3.37 per share, suggesting growth of 6.7% 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 third quarter and we expect this momentum to have sustained in the fiscal fourth 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 $2.13-$2.15 billion (up 12% to 13% at constant exchange rate). This strength is likely to get reflected in the to-be-reported quarter’s results.

CSI displayed strength in the fiscal third quarter, with revenues of $205.9 million, up 60% and 58% from the year-ago period on a constant currency and reported basis, respectively. The segment benefited from a strong fertility sub-segment and PARAGARD sales. This momentum is likely to have continued in the fiscal fourth quarter as well. For fiscal 2021, CSI revenues are expected at $766-$755 million (up 29% to 31% at constant exchange rate). This strength is likely to get reflected in the 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-third quarter 2021 earnings call, the company witnessed revenue growth of 187%. The momentum may have sustained in the fiscal fourth quarter, courtesy of the excellent progress shown with its key accounts and entry into new pilot programs with retailers and buying groups globally.

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 may have favored the fiscal fourth-quarter performance.

Cooper Companies has been witnessing higher contact lenses demand, driven by 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 fourth-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 +0.55%. 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 #4 (Sell).

Peer Releases

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) , and AngioDynamics, Inc. (ANGO - Free Report) .

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%.

Medpace, currently carrying a Zacks Rank #1, reported third-quarter 2021 adjusted EPS of $1.29, which surpassed the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.

Medpace has an estimated long-term growth rate of 16.4%. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 11.9%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%. Presently, the company sports a Zacks Rank #1.

AngioDynamics’ earnings yield of 0.1% compares favorably with the industry’s (2.8%). The company surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%.

Published in