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Cooper Companies (COO) Q1 Earnings Top, '24 Outlook Raised
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The Cooper Companies, Inc. (COO - Free Report) reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of 85 cents, which beat the Zacks Consensus Estimate of 79 cents by 7.6%. The bottom line rose 18% on a year-over-year basis.
GAAP EPS in the quarter declined 5% from the year-ago period’s level to 41 cents, primarily due to rising expenses.
Revenue Details
Revenues totaled $931.6 million, which outpaced the Zacks Consensus Estimate by 1.8%. The top line improved 9% on a year-over-year basis and 8% at constant currency (cc).
The figure rose 8% organically. Strong revenue growth across all segments and geographies, driven by healthy demand for products and services, was partially offset by an unfavorable currency movement. CooperVision’s (“CVI”) growth was driven by COO’s toric and multifocal portfolio, while CooperSurgical’s (“CSI”) growth was led by its office and surgical business.
Segmental Details
CooperVision:The segment’s revenues totaled $621.5 million, up 7% at cc and 6% on a reported basis. Organically, sales were up 7%.
Per management, CooperVision witnessed an increase in revenues from toric and multifocal lenses (48% of CVI), indicating an improvement of 12% at cc and 14% on a reported basis. Toric and multifocal lenses’ revenues totaled $297.3 million.
Single-use sphere and other lenses’ (52% of CVI) revenues amounted to $324.2 million, up 1% at cc as well as on a reported basis.
Geographically, the segment witnessed a revenue improvement of $252.6 million in the Americas (41% of CVI), up 4% on a reported basis and 6% at cc. EMEA revenues (36% of CVI) amounted to $238.2 million, up 11% year over year and 8% at cc.
Asia Pacific sales (22% of CVI) rose 8% year over year to $130.7 million. The figure was up 6% at cc and 7% organically.
CooperSurgical:The segment reported revenues of $310.1 million, up 13% at cc and 12% on a year-over-year basis.Organically, sales were also up 8%.
Sub-segment Office and Surgical products (60% of CSI) generated $191.1 million in revenues, up 16% at cc as well as on a year-over-year basis. Fertility (40% of CSI) revenues totaled $119 million, up 6% reportedly year over year and 9% at cc.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The gross profit was $623.8 million, up 11.7% year over year. The adjusted gross margin came in at 67% of net revenues, expanding 200 basis points (bps) year over year.
Meanwhile, selling, general and administrative expenses increased 15.1% to $380.9 million. Research and development expenses rose 25% year over year to $39.5 million.
The operating income in the quarter totaled $153.1 million, up 2.4% year over year. The adjusted operating margin was 16.4%, down 100 basis points from the prior-year quarter’s figure.
Financial Position
COO exited the first quarter of fiscal 2024 with cash and cash equivalents of $135.2 million, up from $120.8 million at the end of the fourth quarter of fiscal 2023.
Fiscal 2024 Guidance
Cooper Companies raised its guidance for fiscal 2024.
The company now projects total revenues in the range of $3.847-$3.897 billion, indicating organic growth of 7-8% from the previously guided range of $3.809-$3.877 billion. The Zacks Consensus Estimate for the same is currently pegged at $4.11 billion.
CVI revenues are now estimated in the $2.573-$2.604 billion range (organic growth of 8-9%; previously $2.548-$2.594 billion). CSI revenues are projected in the band of $1.274-$1.293 billion, implying organic growth of 5-7% from the previously estimated range of $1.261-$1.283 billion.
Adjusted EPS is anticipated in the band of $3.50-$3.58. The Zacks Consensus Estimate for the same is pegged at $3.88.
Zacks Rank and Stocks to Consider
The Cooper Companies currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. (COR - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
Cencora, carrying a Zacks Rank of 2 (Buy) at present, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.7%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, which beat the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.1%.
Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently sports a Zacks Rank #1.
CAH has a long-term estimated growth rate of 15.9%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.6%.
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Cooper Companies (COO) Q1 Earnings Top, '24 Outlook Raised
The Cooper Companies, Inc. (COO - Free Report) reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of 85 cents, which beat the Zacks Consensus Estimate of 79 cents by 7.6%. The bottom line rose 18% on a year-over-year basis.
GAAP EPS in the quarter declined 5% from the year-ago period’s level to 41 cents, primarily due to rising expenses.
Revenue Details
Revenues totaled $931.6 million, which outpaced the Zacks Consensus Estimate by 1.8%. The top line improved 9% on a year-over-year basis and 8% at constant currency (cc).
The figure rose 8% organically. Strong revenue growth across all segments and geographies, driven by healthy demand for products and services, was partially offset by an unfavorable currency movement. CooperVision’s (“CVI”) growth was driven by COO’s toric and multifocal portfolio, while CooperSurgical’s (“CSI”) growth was led by its office and surgical business.
Segmental Details
CooperVision:The segment’s revenues totaled $621.5 million, up 7% at cc and 6% on a reported basis. Organically, sales were up 7%.
Per management, CooperVision witnessed an increase in revenues from toric and multifocal lenses (48% of CVI), indicating an improvement of 12% at cc and 14% on a reported basis. Toric and multifocal lenses’ revenues totaled $297.3 million.
Single-use sphere and other lenses’ (52% of CVI) revenues amounted to $324.2 million, up 1% at cc as well as on a reported basis.
Geographically, the segment witnessed a revenue improvement of $252.6 million in the Americas (41% of CVI), up 4% on a reported basis and 6% at cc. EMEA revenues (36% of CVI) amounted to $238.2 million, up 11% year over year and 8% at cc.
Asia Pacific sales (22% of CVI) rose 8% year over year to $130.7 million. The figure was up 6% at cc and 7% organically.
CooperSurgical:The segment reported revenues of $310.1 million, up 13% at cc and 12% on a year-over-year basis.Organically, sales were also up 8%.
Sub-segment Office and Surgical products (60% of CSI) generated $191.1 million in revenues, up 16% at cc as well as on a year-over-year basis. Fertility (40% of CSI) revenues totaled $119 million, up 6% reportedly year over year and 9% 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
The gross profit was $623.8 million, up 11.7% year over year. The adjusted gross margin came in at 67% of net revenues, expanding 200 basis points (bps) year over year.
Meanwhile, selling, general and administrative expenses increased 15.1% to $380.9 million. Research and development expenses rose 25% year over year to $39.5 million.
The operating income in the quarter totaled $153.1 million, up 2.4% year over year. The adjusted operating margin was 16.4%, down 100 basis points from the prior-year quarter’s figure.
Financial Position
COO exited the first quarter of fiscal 2024 with cash and cash equivalents of $135.2 million, up from $120.8 million at the end of the fourth quarter of fiscal 2023.
Fiscal 2024 Guidance
Cooper Companies raised its guidance for fiscal 2024.
The company now projects total revenues in the range of $3.847-$3.897 billion, indicating organic growth of 7-8% from the previously guided range of $3.809-$3.877 billion. The Zacks Consensus Estimate for the same is currently pegged at $4.11 billion.
CVI revenues are now estimated in the $2.573-$2.604 billion range (organic growth of 8-9%; previously $2.548-$2.594 billion). CSI revenues are projected in the band of $1.274-$1.293 billion, implying organic growth of 5-7% from the previously estimated range of $1.261-$1.283 billion.
Adjusted EPS is anticipated in the band of $3.50-$3.58. The Zacks Consensus Estimate for the same is pegged at $3.88.
Zacks Rank and Stocks to Consider
The Cooper Companies currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. (COR - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
Cencora, carrying a Zacks Rank of 2 (Buy) at present, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.7%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, which beat the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.1%.
Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently sports a Zacks Rank #1.
CAH has a long-term estimated growth rate of 15.9%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.6%.