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Cooper Companies' Innovation Fuels Growth Amid Macro Headwinds
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Key Takeaways
COO posted EPS growth of 14% and lifted margins to 24.9% via cost control and efficiency gains.
COO's MyDay and MySight lenses rose 10% and 35%, respectively, driving premium product momentum.
COO's fertility growth slowed to 3% as Asia cycles declined and clinics deferred spending.
The Cooper Companies, Inc.’s (COO - Free Report) strategic investments in innovation and its diversified product base support long-term growth. However, near-term macro and inventory challenges, particularly in fertility and global consumer spending, require careful monitoring. Investors should weigh the company's solid execution against sector-specific and macro uncertainties.
Shares of this Zacks Rank #3 (Hold) company have lost 20% so far this year compared with the industry's 2.3% decline. The S&P 500 Index has increased 9.6% in the said time frame.
The Cooper Companies, with a market capitalization of $14.65 billion, is a global specialty medical device company.
Image Source: Zacks Investment Research
The company’s bottom line is estimated to improve 10.1% over the next five years. Its earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 3.18%.
What's Driving COO’s Performance?
Strong Execution and Margin Expansion:COO delivered solid organic top-line growth and improved margins, with adjusted earnings per share (EPS) up 14% year over year to 96 cents. Operating margin expanded to 24.9%, driven by efficiency gains, OpEx leverage and disciplined cost management. This demonstrates COO's operational resilience even amid macro softness.
Product Innovation and Growth in Premium Segments:The MyDay daily silicone hydrogel lenses and MySight myopia management products are gaining traction, growing 10% and 35%, respectively, year over year. Continued expansion in toric and multifocal ranges, new product launches (e.g., MyDay Energys) and private label wins suggest sustained future revenue momentum.
Strength in Surgical Portfolio and Office-Based Products:CooperSurgical posted 8% revenue growth, with notable strength in office-based surgical devices (up 13%) and PARAGARD IUD (up 18%). Despite fertility softness, other categories in surgical remain robust, providing diversification and a buffer to near-term fertility pressures.
What's Weighing on the Stock?
Fertility Market Weakness and Soft Asia Trends: Fertility revenue growth slowed to 3%, with ongoing cycle declines in Asia Pacific and deferred capital spending by clinics. Management now expects low-single-digit growth for the fertility segment in fiscal 2025 compared to previously higher expectations. This is indicative of cyclical weakness and potential consumer constraints.
Inventory and Channel Destocking Headwinds: Channel inventory reductions across the contact lens market, along with patients buying shorter-term lens supplies, are pressuring revenue visibility. Even with strong underlying demand and fit data, COO acknowledged ongoing inventory pressures that could weigh on near-term growth.
Tariff and FX Risks Cloud FY26 Outlook: COO expects a $4 million tariff hit to fiscal 2025 COGS and a 3% EPS headwind in fiscal 2026 if tariffs remain unchanged. While mitigations are planned, COO remains exposed to global supply-chain shifts and FX fluctuations, which could pressure future margins.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.12 billion, implying growth of 5.7% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $4.06, indicating an improvement of 10% from the previous year’s recorded level.
In the past 60 days, COO’s earnings estimate for fiscal 2025 has moved north by 1 cent.
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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Cooper Companies' Innovation Fuels Growth Amid Macro Headwinds
Key Takeaways
The Cooper Companies, Inc.’s (COO - Free Report) strategic investments in innovation and its diversified product base support long-term growth. However, near-term macro and inventory challenges, particularly in fertility and global consumer spending, require careful monitoring. Investors should weigh the company's solid execution against sector-specific and macro uncertainties.
Shares of this Zacks Rank #3 (Hold) company have lost 20% so far this year compared with the industry's 2.3% decline. The S&P 500 Index has increased 9.6% in the said time frame.
The Cooper Companies, with a market capitalization of $14.65 billion, is a global specialty medical device company.
Image Source: Zacks Investment Research
The company’s bottom line is estimated to improve 10.1% over the next five years. Its earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 3.18%.
What's Driving COO’s Performance?
Strong Execution and Margin Expansion:COO delivered solid organic top-line growth and improved margins, with adjusted earnings per share (EPS) up 14% year over year to 96 cents. Operating margin expanded to 24.9%, driven by efficiency gains, OpEx leverage and disciplined cost management. This demonstrates COO's operational resilience even amid macro softness.
Product Innovation and Growth in Premium Segments:The MyDay daily silicone hydrogel lenses and MySight myopia management products are gaining traction, growing 10% and 35%, respectively, year over year. Continued expansion in toric and multifocal ranges, new product launches (e.g., MyDay Energys) and private label wins suggest sustained future revenue momentum.
Strength in Surgical Portfolio and Office-Based Products:CooperSurgical posted 8% revenue growth, with notable strength in office-based surgical devices (up 13%) and PARAGARD IUD (up 18%). Despite fertility softness, other categories in surgical remain robust, providing diversification and a buffer to near-term fertility pressures.
What's Weighing on the Stock?
Fertility Market Weakness and Soft Asia Trends: Fertility revenue growth slowed to 3%, with ongoing cycle declines in Asia Pacific and deferred capital spending by clinics. Management now expects low-single-digit growth for the fertility segment in fiscal 2025 compared to previously higher expectations. This is indicative of cyclical weakness and potential consumer constraints.
Inventory and Channel Destocking Headwinds: Channel inventory reductions across the contact lens market, along with patients buying shorter-term lens supplies, are pressuring revenue visibility. Even with strong underlying demand and fit data, COO acknowledged ongoing inventory pressures that could weigh on near-term growth.
Tariff and FX Risks Cloud FY26 Outlook: COO expects a $4 million tariff hit to fiscal 2025 COGS and a 3% EPS headwind in fiscal 2026 if tariffs remain unchanged. While mitigations are planned, COO remains exposed to global supply-chain shifts and FX fluctuations, which could pressure future margins.
The Cooper Companies, Inc. Price
The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote
Estimate Trend
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.12 billion, implying growth of 5.7% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $4.06, indicating an improvement of 10% from the previous year’s recorded level.
In the past 60 days, COO’s earnings estimate for fiscal 2025 has moved north by 1 cent.
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.