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COO Q2 Earnings Beat, 2025 Sales Outlook Tightened, Stock Down
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The Cooper Companies, Inc. (COO - Free Report) delivered second-quarter fiscal 2025 adjusted earnings per share (EPS) of 96 cents, which improved 11.5% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 3.2%. Operational improvements drove the bottom-line growth.
GAAP EPS for the quarter was 44 cents, which remained flat year over year. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
COO’s Revenues in Detail
Revenues totaled $1 billion, up 6.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.7%.
The quarterly revenues were up 7% year over year at constant exchange rate (CER) as well as on an organic basis.
Robust performances of daily silicone hydrogel lenses, and office and surgical portfolio drove the top line in the fiscal second quarter.
Despite beating estimates on both counts, shares of COO were down 4.9% during after-hours trading on May 29. The company’s shares have lost 13% so far this year compared with the industry’s decline of 0.8%. The S&P 500 Index was down 0.3% during the same period.
Image Source: Zacks Investment Research
Cooper Companies’ Segmental Details
COO conducts its business via two reportable segments — CooperVision (“CVI”) and CooperSurgical (“CSI”).
For the second quarter of fiscal 2025, the CVI segment’s revenues totaled $669.6 million, up 5% year over year on a reported basis and 7% at CER as well as organically. This figure compares to our segmental projection of $668.7 million.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
In the fiscal second quarter, Toric and multifocal revenues totaled $328.4 million, up 6% year over year on a reported basis, and up 7% organically as well as at CER. This figure compares to our projection of $326.3 million.
Sphere, other revenues totaled $341.2 million, up 5% year over year on a reported basis and up 6% at CER as well as organically. This figure compares to our projection of $342.5 million.
Geographically, CVI derives revenues from the Americas, Europe, and Asia Pacific.
Americas revenues totaled $282.4 million, up 7% year over year on a reported basis and up 8% at CER and organically. The figure compares to our projection of $275.7 million.
EMEA revenues amounted to $248.6 million, up 5% year over year on a reported basis and up 6% at CER and organically. This figure compares to our projection of $253 million.
Asia Pacific revenues in the fiscal first quarter totaled $138.6 million, up 3% year over year organically and 5% at CER. This figure compares to our projection of $140 million.
The CSI segment’s revenues totaled $332.7 million, which moved up 8% on a reported basis, 9% at CER and 7% organically. This figure compares to our projection of $326.7 million.
Category-wise, CSI derives revenues from Office and surgical, and Fertility. In the fiscal first quarter, Office and surgical revenues totaled $205.8 million, up 13% on a reported basis and at CER, and up 10% organically. This figure compares to our projection of $193.4 million.
Fertility revenues in the fiscal first quarter amounted to $126.9 million, up 3% on a reported basis, up 4% organically and up 2% at CER year over year. This figure compares to our projection of $133.4 million.
COO’s Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit rose 2.4% to $681.9 million. The adjusted gross margin expanded 100 basis points (bps) to 68%. We had projected 65.9% of gross margin for the fiscal second quarter.
Selling, general and administrative expenses rose 4.9% to $399 million. Research and development expenses increased 17% to $45.5 million. Adjusted operating costs totaled $432.4 million, reflecting a 5.6% increase from the prior-year quarter’s level.
Adjusted operating profit totaled $249.5 million, reflecting an 11% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal second quarter expanded 100 bps to 25%.
Cooper Companies’ Financial Position
COO exited second-quarter fiscal 2025 with cash and cash equivalents of $116.2 million compared with $100.9 million at the end of the fiscal first quarter.
Total debt at the end of the fiscal second quarter was $2.77 billion compared with $2.59 billion at the end of the fiscal first quarter.
COO’s Guidance
Cooper Companies has updated its outlook for fiscal 2025.
The company expects revenues to be in the range of $4,107-$4,146 million (prior $4,080-$4,158 million), suggesting an organic improvement of 5-6% from the prior-year figure. The Zacks Consensus Estimate is pegged at $4.12 billion.
COO expects the CVI segment’s revenues to be in the range of $2,759-$2,786 million (previously $2,733-$2,786 million), suggesting an organic improvement of 6-7% from the year-earlier registered figure.
The company anticipates the CSI segment’s revenues to be in the range of $1,347-$1,359 million (prior $1,347-$1,372 million), indicating an organic improvement of 3.5-4.5% from the year-earlier figure.
For the entire fiscal year, adjusted EPS is expected to be in the $4.05-$4.11 range. The Zacks Consensus Estimate is pegged at $3.98.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies exited the fiscal second quarter on a strong note. Both its earnings and sales beat expectations. CooperVision’s robust growth was driven by continued strength in MyDay and Clarity daily silicone hydrogel lenses, as well as in Biofinity and Avaira in the frequent replacement category. MyDay saw robust global demand, including successful launches like MyDay Energys in Canada. Clarity's redesigned multifocal variant performed well, while Biofinity maintained its position as the world’s most-worn contact lens.
MySight, COO’s myopia management solution, grew 35%, bolstered by a new pricing strategy and a major private label deal. A free trial program is expected to support continued adoption, with a temporary revenue dip in the fiscal third quarter followed by stronger growth in the fourth quarter.
CooperSurgical's outperformance was led by strength in the office and surgical segment, including the ALLY uterine manipulator and obp Surgical’s retractors. PARAGARD sales surged 18% due to pre-buying ahead of a price increase, but are projected to decline in the third quarter and remain flat in the fourth quarter. Fertility revenues faced macro pressures in Asia, and tighter clinic spending weighed on growth.
Tariffs are anticipated to have a $4 million impact this year, with a potential 3% earnings drag in fiscal 2026 if unmitigated. Despite macro softness and lower market growth assumptions, COO continues to gain share through innovation, capacity expansion, and commercial execution, positioning it well for the remainder of the fiscal year.
The Cooper Companies’ Zacks Rank and Stocks to Consider
WGS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 145.82%. WGS’ shares have lost 6.1% so far this year.
CVS Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 12.2% for 2025.
CVS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 18.08%. CVS’ shares have risen 42% year to date.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 16.7% for 2025.
COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.00%. Its shares have gained 30.4% so far this year.
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COO Q2 Earnings Beat, 2025 Sales Outlook Tightened, Stock Down
The Cooper Companies, Inc. (COO - Free Report) delivered second-quarter fiscal 2025 adjusted earnings per share (EPS) of 96 cents, which improved 11.5% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 3.2%. Operational improvements drove the bottom-line growth.
GAAP EPS for the quarter was 44 cents, which remained flat year over year. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
COO’s Revenues in Detail
Revenues totaled $1 billion, up 6.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.7%.
The quarterly revenues were up 7% year over year at constant exchange rate (CER) as well as on an organic basis.
Robust performances of daily silicone hydrogel lenses, and office and surgical portfolio drove the top line in the fiscal second quarter.
Despite beating estimates on both counts, shares of COO were down 4.9% during after-hours trading on May 29. The company’s shares have lost 13% so far this year compared with the industry’s decline of 0.8%. The S&P 500 Index was down 0.3% during the same period.
Image Source: Zacks Investment Research
Cooper Companies’ Segmental Details
COO conducts its business via two reportable segments — CooperVision (“CVI”) and CooperSurgical (“CSI”).
For the second quarter of fiscal 2025, the CVI segment’s revenues totaled $669.6 million, up 5% year over year on a reported basis and 7% at CER as well as organically. This figure compares to our segmental projection of $668.7 million.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
In the fiscal second quarter, Toric and multifocal revenues totaled $328.4 million, up 6% year over year on a reported basis, and up 7% organically as well as at CER. This figure compares to our projection of $326.3 million.
Sphere, other revenues totaled $341.2 million, up 5% year over year on a reported basis and up 6% at CER as well as organically. This figure compares to our projection of $342.5 million.
Geographically, CVI derives revenues from the Americas, Europe, and Asia Pacific.
Americas revenues totaled $282.4 million, up 7% year over year on a reported basis and up 8% at CER and organically. The figure compares to our projection of $275.7 million.
EMEA revenues amounted to $248.6 million, up 5% year over year on a reported basis and up 6% at CER and organically. This figure compares to our projection of $253 million.
Asia Pacific revenues in the fiscal first quarter totaled $138.6 million, up 3% year over year organically and 5% at CER. This figure compares to our projection of $140 million.
The CSI segment’s revenues totaled $332.7 million, which moved up 8% on a reported basis, 9% at CER and 7% organically. This figure compares to our projection of $326.7 million.
Category-wise, CSI derives revenues from Office and surgical, and Fertility.
In the fiscal first quarter, Office and surgical revenues totaled $205.8 million, up 13% on a reported basis and at CER, and up 10% organically. This figure compares to our projection of $193.4 million.
Fertility revenues in the fiscal first quarter amounted to $126.9 million, up 3% on a reported basis, up 4% organically and up 2% at CER year over year. This figure compares to our projection of $133.4 million.
COO’s Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit rose 2.4% to $681.9 million. The adjusted gross margin expanded 100 basis points (bps) to 68%. We had projected 65.9% of gross margin for the fiscal second quarter.
Selling, general and administrative expenses rose 4.9% to $399 million. Research and development expenses increased 17% to $45.5 million. Adjusted operating costs totaled $432.4 million, reflecting a 5.6% increase from the prior-year quarter’s level.
Adjusted operating profit totaled $249.5 million, reflecting an 11% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal second quarter expanded 100 bps to 25%.
Cooper Companies’ Financial Position
COO exited second-quarter fiscal 2025 with cash and cash equivalents of $116.2 million compared with $100.9 million at the end of the fiscal first quarter.
Total debt at the end of the fiscal second quarter was $2.77 billion compared with $2.59 billion at the end of the fiscal first quarter.
COO’s Guidance
Cooper Companies has updated its outlook for fiscal 2025.
The company expects revenues to be in the range of $4,107-$4,146 million (prior $4,080-$4,158 million), suggesting an organic improvement of 5-6% from the prior-year figure. The Zacks Consensus Estimate is pegged at $4.12 billion.
COO expects the CVI segment’s revenues to be in the range of $2,759-$2,786 million (previously $2,733-$2,786 million), suggesting an organic improvement of 6-7% from the year-earlier registered figure.
The company anticipates the CSI segment’s revenues to be in the range of $1,347-$1,359 million (prior $1,347-$1,372 million), indicating an organic improvement of 3.5-4.5% from the year-earlier figure.
For the entire fiscal year, adjusted EPS is expected to be in the $4.05-$4.11 range. The Zacks Consensus Estimate is pegged at $3.98.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote
Our Take
The Cooper Companies exited the fiscal second quarter on a strong note. Both its earnings and sales beat expectations. CooperVision’s robust growth was driven by continued strength in MyDay and Clarity daily silicone hydrogel lenses, as well as in Biofinity and Avaira in the frequent replacement category. MyDay saw robust global demand, including successful launches like MyDay Energys in Canada. Clarity's redesigned multifocal variant performed well, while Biofinity maintained its position as the world’s most-worn contact lens.
MySight, COO’s myopia management solution, grew 35%, bolstered by a new pricing strategy and a major private label deal. A free trial program is expected to support continued adoption, with a temporary revenue dip in the fiscal third quarter followed by stronger growth in the fourth quarter.
CooperSurgical's outperformance was led by strength in the office and surgical segment, including the ALLY uterine manipulator and obp Surgical’s retractors. PARAGARD sales surged 18% due to pre-buying ahead of a price increase, but are projected to decline in the third quarter and remain flat in the fourth quarter. Fertility revenues faced macro pressures in Asia, and tighter clinic spending weighed on growth.
Tariffs are anticipated to have a $4 million impact this year, with a potential 3% earnings drag in fiscal 2026 if unmitigated. Despite macro softness and lower market growth assumptions, COO continues to gain share through innovation, capacity expansion, and commercial execution, positioning it well for the remainder of the fiscal year.
The Cooper Companies’ Zacks Rank and Stocks to Consider
COO currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same medical industry are GENEDX HOLDINGS (WGS - Free Report) , CVS Health (CVS - Free Report) and Cencora (COR - Free Report) .
GENEDX, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 336% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
WGS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 145.82%. WGS’ shares have lost 6.1% so far this year.
CVS Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 12.2% for 2025.
CVS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 18.08%. CVS’ shares have risen 42% year to date.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 16.7% for 2025.
COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.00%. Its shares have gained 30.4% so far this year.