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Cooper Companies (COO) Q1 Earnings and Revenues Beat Estimates
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The Cooper Companies, Inc. (COO - Free Report) reported first-quarter fiscal 2023 adjusted earnings per share (EPS) of $2.90, which beat the Zacks Consensus Estimate of $2.66 by 9%. However, the bottom line declined 11% on a year-over-year basis.
GAAP EPS in the fiscal first quarter declined 11% from the year-ago period to $1.70 primarily due to higher costs and expenses.
Revenue Details
Revenues of this Zacks Rank #3 (Hold) company were $858.5 million in the quarter under review, surpassing the Zacks Consensus Estimate by 2.9%. The top line improved 9.1% on a year-over-year basis and 16% at constant currency (cc).
Revenues were up 10% organically. Strong revenue growth across all its segments and geographies was partially offset by an unfavorable currency movement. This, in turn, hurt sales growth of its segments — CooperVision (“CVI”) and CooperSurgical (“CSI”) — in the EMEA and Asia Pacific regions.
Q1 Segmental Details
CooperVision: The segment’s revenues totaled $581.3 million, up 11% at cc and up 4% on a reported basis. Organically, sales were up 10%.
Per management, the segment witnessed an increase in revenues from Single-use sphere lenses (29% of CVI), indicating an improvement of 10% at cc and 1% on a reported basis. Single-use sphere lens’ revenues totaled $168.3 million.
Toric (33% of CVI) revenues amounted to $189.8 million, up 11% at cc and 4% on a reported basis. Multifocal (12% of CVI) generated revenues of $71.8 million, up 17% at cc and 9% on a reported basis.
Non-single-use sphere (26% of CVI) revenues were $151.4 million, up 4% on a reported basis and up 7% organically from the year-ago quarter.
Geographically, the segment witnessed a revenue improvement of $241.4 million in the Americas (42% of CVI), up 12% on a reported basis and at cc. EMEA revenues (37% of CVI) amounted to $214.4 million, flat year over year but up 11% at cc.
Asia Pacific sales (21% of CVI) declined 5% year over year to $125.5 million. However, sales were up 10% at cc.
CooperSurgical: The segment reported revenues of $277.2 million, up 26% at cc and 23% on a year-over-year basis. Organically, sales were up 10%.
Sub-segment Office and Surgical products (60% of CSI) generated $165.2 million in revenues, up 29% at cc and 28% on a year-over-year basis. Fertility (40% of CSI) revenues were $112 million, up 16% year over year and 23% at cc.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
In the first quarter of fiscal 2023, the gross profit was $558.5 million, up 7.7% year over year. The adjusted gross margin was 65% of net revenues, down 200 basis points (bps) year over year. The decline was primarily due to unfavorable currency movements.
Meanwhile, selling, general and administrative expenses increased 3.7% to $330.9 million. Research and development expenses increased 20.6% year over year to $31.6 million.
The operating income in the quarter totaled $149.5 million, down 14.3% year over year. The adjusted operating margin was 23%, down 300 bps from the prior-year quarter.
Financial Position
The company exited the first quarter of fiscal 2023 with cash and cash equivalents of $118.2 million, down from $138.2 million at the end of the fiscal fourth quarter of 2022. Net cash provided by operating activities during the reported quarter was $166.6 million.
FY23 Guidance
Cooper Companies updated its financial guidance for fiscal 2023. It is to be noted that the outlook does not include the Cook Medical Reproductive Health buyout, announced on Feb 7, 2022, due to pending regulatory approval.
For fiscal 2023, the company projects total revenues between $3.496 billion and $3.553 billion, indicating 7-9% organic growth (previously $3.455 billion and $3.515 billion; 6-8% growth). The Zacks Consensus Estimate for the same is pegged at $3.48 billion.
CVI revenues are estimated to be $2.352-$2.388 billion (organic growth of 8-9%) compared with the previously mentioned $2.325-$2.365 billion (organic growth of 7-9%). CSI revenues are expected to be $1.144-$1.166 billion, implying organic growth of 5-7% (previously $1.13-$1.15 billion, implying organic growth of 4-6%).
Adjusted EPS is anticipated to be $12.60-$12.90, up from the previously mentioned $12.30-$12.60. The Zacks Consensus Estimate for the same is pegged at $12.47 per share.
Peer Performance
Some other stocks in the medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, currently carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2023 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, beating the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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Cooper Companies (COO) Q1 Earnings and Revenues Beat Estimates
The Cooper Companies, Inc. (COO - Free Report) reported first-quarter fiscal 2023 adjusted earnings per share (EPS) of $2.90, which beat the Zacks Consensus Estimate of $2.66 by 9%. However, the bottom line declined 11% on a year-over-year basis.
GAAP EPS in the fiscal first quarter declined 11% from the year-ago period to $1.70 primarily due to higher costs and expenses.
Revenue Details
Revenues of this Zacks Rank #3 (Hold) company were $858.5 million in the quarter under review, surpassing the Zacks Consensus Estimate by 2.9%. The top line improved 9.1% on a year-over-year basis and 16% at constant currency (cc).
Revenues were up 10% organically. Strong revenue growth across all its segments and geographies was partially offset by an unfavorable currency movement. This, in turn, hurt sales growth of its segments — CooperVision (“CVI”) and CooperSurgical (“CSI”) — in the EMEA and Asia Pacific regions.
Q1 Segmental Details
CooperVision: The segment’s revenues totaled $581.3 million, up 11% at cc and up 4% on a reported basis. Organically, sales were up 10%.
Per management, the segment witnessed an increase in revenues from Single-use sphere lenses (29% of CVI), indicating an improvement of 10% at cc and 1% on a reported basis. Single-use sphere lens’ revenues totaled $168.3 million.
Toric (33% of CVI) revenues amounted to $189.8 million, up 11% at cc and 4% on a reported basis. Multifocal (12% of CVI) generated revenues of $71.8 million, up 17% at cc and 9% on a reported basis.
Non-single-use sphere (26% of CVI) revenues were $151.4 million, up 4% on a reported basis and up 7% organically from the year-ago quarter.
Geographically, the segment witnessed a revenue improvement of $241.4 million in the Americas (42% of CVI), up 12% on a reported basis and at cc. EMEA revenues (37% of CVI) amounted to $214.4 million, flat year over year but up 11% at cc.
Asia Pacific sales (21% of CVI) declined 5% year over year to $125.5 million. However, sales were up 10% at cc.
CooperSurgical: The segment reported revenues of $277.2 million, up 26% at cc and 23% on a year-over-year basis. Organically, sales were up 10%.
Sub-segment Office and Surgical products (60% of CSI) generated $165.2 million in revenues, up 29% at cc and 28% on a year-over-year basis. Fertility (40% of CSI) revenues were $112 million, up 16% year over year and 23% at cc.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote
Margin Analysis
In the first quarter of fiscal 2023, the gross profit was $558.5 million, up 7.7% year over year. The adjusted gross margin was 65% of net revenues, down 200 basis points (bps) year over year. The decline was primarily due to unfavorable currency movements.
Meanwhile, selling, general and administrative expenses increased 3.7% to $330.9 million. Research and development expenses increased 20.6% year over year to $31.6 million.
The operating income in the quarter totaled $149.5 million, down 14.3% year over year. The adjusted operating margin was 23%, down 300 bps from the prior-year quarter.
Financial Position
The company exited the first quarter of fiscal 2023 with cash and cash equivalents of $118.2 million, down from $138.2 million at the end of the fiscal fourth quarter of 2022. Net cash provided by operating activities during the reported quarter was $166.6 million.
FY23 Guidance
Cooper Companies updated its financial guidance for fiscal 2023. It is to be noted that the outlook does not include the Cook Medical Reproductive Health buyout, announced on Feb 7, 2022, due to pending regulatory approval.
For fiscal 2023, the company projects total revenues between $3.496 billion and $3.553 billion, indicating 7-9% organic growth (previously $3.455 billion and $3.515 billion; 6-8% growth). The Zacks Consensus Estimate for the same is pegged at $3.48 billion.
CVI revenues are estimated to be $2.352-$2.388 billion (organic growth of 8-9%) compared with the previously mentioned $2.325-$2.365 billion (organic growth of 7-9%). CSI revenues are expected to be $1.144-$1.166 billion, implying organic growth of 5-7% (previously $1.13-$1.15 billion, implying organic growth of 4-6%).
Adjusted EPS is anticipated to be $12.60-$12.90, up from the previously mentioned $12.30-$12.60. The Zacks Consensus Estimate for the same is pegged at $12.47 per share.
Peer Performance
Some other stocks in the medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, currently carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2023 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, beating the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.