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What's in Store for Cooper Companies (COO) in Q1 Earnings?

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The Cooper Companies, Inc.’s (COO - Free Report) first-quarter fiscal 2024 results are scheduled to be released on Feb 29, after the closing bell.

In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Its earnings beat estimates in two of the trailing four quarters and met twice, delivering an average surprise of 2.84%.

Q1 Estimates

The Zacks Consensus Estimate for revenues is pegged at $915.2 million for the soon-to-be-reported quarter, indicating a 6.6% increase from the year-ago quarter’s level. The same for earnings is pinned at 79 cents per share, implying an 8.2% improvement from the prior-year period’s reported number.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both these segments displayed strength in the past few quarters. This trend is likely to have continued in the first quarter of fiscal 2024.

Solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals are expected to have contributed to the CVI segment’s performance.

The segment’s revenues for fiscal 2024 are projected in the range of $2.548-$2.594 billion (organic growth of 7-9%). This momentum is likely to be reflected in the upcoming quarterly results.

CSI displayed strength in the fourth quarter of fiscal 2023, with revenues of $304.2 million. The top line increased 7% year over year on a constant currency basis and 6% on a reported basis.

The segment benefited from fertility as well as surgical products. This trend is likely to have continued in the quarter to be reported.

For fiscal 2024, CSI revenues are expected to be in the range of $1.261-$1.283 billion (4-6% organic growth). This strength is likely to be reflected in the upcoming quarterly results.

During the previous reported quarter, the company witnessed a significant increase in revenues with respect to MyDay daily silicone hydrogel lenses. The momentum is likely to have continued in the fiscal first quarter, courtesy of the excellent progress of its key accounts and entry into new pilot programs with retailers and buying groups globally.

Cooper Companies has been witnessing higher demand for contact lenses, driven by the recent global transition to daily contact lenses by customers. The company’s advancements in customized product offerings are expected to have contributed to its fiscal first-quarter performance.

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for PDCO this time around. 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: Earnings ESP, which represents the difference between the Most Accurate Estimate (78 cents per share) and the Zacks Consensus Estimate is -0.99%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3 at present.

Stocks to Consider

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.

SiBone (SIBN - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SIBN has an estimated earnings growth rate of 36.3% for fiscal 2023. It delivered a trailing four-quarter average earnings surprise of 24.21%.

Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank of 3 at present.

The stock has an estimated earnings growth rate of 10% for fiscal 2023. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.

Universal Health Services (UHS - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #2 at present. UHS has an estimated earnings growth rate of 5.3% for 2023.

UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.47%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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