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Why Is The Cooper Companies (COO) Up 0.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for The Cooper Companies (COO - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Cooper Companies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
COO Q3 Earnings Top Estimates, Revenues Miss on Destocking
The Cooper Companies reported third-quarter fiscal 2026 adjusted earnings per share of $1.15, up 4.5% year over year. The figure beat the Zacks Consensus Estimate of $1.11 by 3.6%, aided by expense management and productivity initiatives.
GAAP earnings per share for the quarter was $2.24, significantly up from the year-ago period’s figure of 49 cents, primarily driven by a $307.2 million discrete tax benefit following the favorable completion of a U.K. tax examination.
COO’s fiscal third-quarter revenues rose 0.6% year over year to $1.066 billion but missed the Zacks Consensus Estimate of $1.099 billion by 3.0%. The quarterly revenues were up 1% year over year at the constant exchange rate (CER). U.S. CooperVision channel inventory reductions weighed on sales. MiSight remained a bright spot, delivering 20% organic growth.
For the third quarter of fiscal 2026, CVI revenues were $717.0 million, flat year over year on a reported, CER and organic basis. The segment faced pressure from proactive U.S. channel inventory reductions, which offset underlying demand and strength in several premium product categories.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
Toric and multifocal revenues were $363.8 million, up 1% year over year and 2% at CER as well as organically. Sphere and other revenues totaled $353.2 million, declined 2% year over year on a reported basis and fell 1% at CER as well as organically. MyDay toric, MyDay multifocal and MyDay Energys each recorded double-digit growth, while MiSight maintained strong momentum.
COO's CooperSurgical Segment Growth Holds Firm
In the third quarter of fiscal 2026, CSI revenues were $349.2 million, up 2% year over year on a reported basis as well as at CER and grew 3% organically.
Category-wise, CSI derives revenues from Office and Surgical, and Fertility.
Office and Surgical revenues were $208 million, up 2% on a reported and organic basis as well as at CER. Medical Devices grew 4%, driven by strength in surgical OB/GYN and specialty device portfolios, while Paragard revenues were flat. Management continued to point to genomics and adoption of the Witness automated laboratory management platform as contributors to fertility performance.
Fertility revenues were $141.2 million, up 3% year over year on a reported basis, up 4% at CER with organic growth of 5%, supported by broad-based strength across products and services, new clinic wins and expansion within existing accounts.
COO's Geographic Results Show a Mixed Trend
Geographically, growth was led by the Americas, while EMEA and Asia Pac remain mixed as strength across several markets was offset by macro headwinds in the Middle East and China.
Within CVI, Americas revenues totaled $281.6 million, down 2% year over year on a reported basis, at CER and organically. The weakness reflected the company's decision to reduce U.S. channel inventory. Management noted that Americas revenues would have grown around 5% without the inventory actions, while underlying U.S. consumption remained at a mid-single-digit growth rate.
EMEA revenues were $309.4 million, up 6% year over year on a reported basis and 5% at CER as well as organically, supported by continued strength across premium offerings. Asia Pacific revenues totaled $126 million, down 10% on a reported basis and 5% at CER and organically, with portfolio rationalization and softer conditions in certain markets weighing on performance.
COO’s Q3 Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit declined 0.3% year over year to $711.1 million. The adjusted gross margin was 66.7%, down 60 basis points (bps) from the year-ago period, reflecting higher manufacturing costs and unfavorable foreign exchange.
Selling, general and administrative expenses decreased 4.8% to $401.3 million. Research and development expenses fell 6.7% to $41.6 million. Adjusted operating costs totaled $430.4 million, reflecting a 1.5% decrease from the prior-year quarter’s level.
Adjusted operating profit totaled $280.7 million, up 1.6% from the year-earlier quarter’s level. The adjusted operating margin expanded 30 bps to 26.3%, aided by productivity improvements and disciplined expense management.
Cooper Companies’ Financial Position
COO exited the third quarter of fiscal 2026 with cash and cash equivalents of $154.7 million compared with $138.8 million at the end of the second quarter of fiscal 2026.
Total debt at the end of the fiscal third quarter was $2.54 billion compared with $2.46 billion at the end of the fiscal second quarter.
COO's Outlook for Q4 & FY26
Cooper Companies has issued its outlook for the fiscal fourth quarter and updated its guidance for fiscal 2026.
For the fourth quarter of fiscal 2026, Cooper Companies expects revenues of $1.057-$1.080 billion, representing organic growth of 0-2%, and adjusted EPS of $1.05-$1.09.
CVI revenues are projected at $692-$706 million, implying organic growth of negative 2% to flat, as U.S. inventory reductions continue. CSI revenues are expected at $364-$374 million, representing organic growth of 4-6%.
For fiscal 2026, revenues are now forecast at $4.229-$4.252 billion, with adjusted EPS of $4.51-$4.55. The company expects CVI revenues of $2.828-$2.842 billion, representing organic growth of 1-2% and CSI revenues of $1.401-$1.410 billion, representing organic growth of 4-5%, while reaffirming its objective of more than $2.2 billion in cumulative free cash flow for fiscal 2026-2028.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.07% due to these changes.
VGM Scores
Currently, The Cooper Companies has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise The Cooper Companies has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is The Cooper Companies (COO) Up 0.2% Since Last Earnings Report?
It has been about a month since the last earnings report for The Cooper Companies (COO - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Cooper Companies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
COO Q3 Earnings Top Estimates, Revenues Miss on Destocking
The Cooper Companies reported third-quarter fiscal 2026 adjusted earnings per share of $1.15, up 4.5% year over year. The figure beat the Zacks Consensus Estimate of $1.11 by 3.6%, aided by expense management and productivity initiatives.
GAAP earnings per share for the quarter was $2.24, significantly up from the year-ago period’s figure of 49 cents, primarily driven by a $307.2 million discrete tax benefit following the favorable completion of a U.K. tax examination.
COO’s fiscal third-quarter revenues rose 0.6% year over year to $1.066 billion but missed the Zacks Consensus Estimate of $1.099 billion by 3.0%. The quarterly revenues were up 1% year over year at the constant exchange rate (CER). U.S. CooperVision channel inventory reductions weighed on sales. MiSight remained a bright spot, delivering 20% organic growth.
COO's CooperVision Segment Faces Inventory Pressure
For the third quarter of fiscal 2026, CVI revenues were $717.0 million, flat year over year on a reported, CER and organic basis. The segment faced pressure from proactive U.S. channel inventory reductions, which offset underlying demand and strength in several premium product categories.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
Toric and multifocal revenues were $363.8 million, up 1% year over year and 2% at CER as well as organically. Sphere and other revenues totaled $353.2 million, declined 2% year over year on a reported basis and fell 1% at CER as well as organically. MyDay toric, MyDay multifocal and MyDay Energys each recorded double-digit growth, while MiSight maintained strong momentum.
COO's CooperSurgical Segment Growth Holds Firm
In the third quarter of fiscal 2026, CSI revenues were $349.2 million, up 2% year over year on a reported basis as well as at CER and grew 3% organically.
Category-wise, CSI derives revenues from Office and Surgical, and Fertility.
Office and Surgical revenues were $208 million, up 2% on a reported and organic basis as well as at CER. Medical Devices grew 4%, driven by strength in surgical OB/GYN and specialty device portfolios, while Paragard revenues were flat. Management continued to point to genomics and adoption of the Witness automated laboratory management platform as contributors to fertility performance.
Fertility revenues were $141.2 million, up 3% year over year on a reported basis, up 4% at CER with organic growth of 5%, supported by broad-based strength across products and services, new clinic wins and expansion within existing accounts.
COO's Geographic Results Show a Mixed Trend
Geographically, growth was led by the Americas, while EMEA and Asia Pac remain mixed as strength across several markets was offset by macro headwinds in the Middle East and China.
Within CVI, Americas revenues totaled $281.6 million, down 2% year over year on a reported basis, at CER and organically. The weakness reflected the company's decision to reduce U.S. channel inventory. Management noted that Americas revenues would have grown around 5% without the inventory actions, while underlying U.S. consumption remained at a mid-single-digit growth rate.
EMEA revenues were $309.4 million, up 6% year over year on a reported basis and 5% at CER as well as organically, supported by continued strength across premium offerings. Asia Pacific revenues totaled $126 million, down 10% on a reported basis and 5% at CER and organically, with portfolio rationalization and softer conditions in certain markets weighing on performance.
COO’s Q3 Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit declined 0.3% year over year to $711.1 million. The adjusted gross margin was 66.7%, down 60 basis points (bps) from the year-ago period, reflecting higher manufacturing costs and unfavorable foreign exchange.
Selling, general and administrative expenses decreased 4.8% to $401.3 million. Research and development expenses fell 6.7% to $41.6 million. Adjusted operating costs totaled $430.4 million, reflecting a 1.5% decrease from the prior-year quarter’s level.
Adjusted operating profit totaled $280.7 million, up 1.6% from the year-earlier quarter’s level. The adjusted operating margin expanded 30 bps to 26.3%, aided by productivity improvements and disciplined expense management.
Cooper Companies’ Financial Position
COO exited the third quarter of fiscal 2026 with cash and cash equivalents of $154.7 million compared with $138.8 million at the end of the second quarter of fiscal 2026.
Total debt at the end of the fiscal third quarter was $2.54 billion compared with $2.46 billion at the end of the fiscal second quarter.
COO's Outlook for Q4 & FY26
Cooper Companies has issued its outlook for the fiscal fourth quarter and updated its guidance for fiscal 2026.
For the fourth quarter of fiscal 2026, Cooper Companies expects revenues of $1.057-$1.080 billion, representing organic growth of 0-2%, and adjusted EPS of $1.05-$1.09.
CVI revenues are projected at $692-$706 million, implying organic growth of negative 2% to flat, as U.S. inventory reductions continue. CSI revenues are expected at $364-$374 million, representing organic growth of 4-6%.
For fiscal 2026, revenues are now forecast at $4.229-$4.252 billion, with adjusted EPS of $4.51-$4.55. The company expects CVI revenues of $2.828-$2.842 billion, representing organic growth of 1-2% and CSI revenues of $1.401-$1.410 billion, representing organic growth of 4-5%, while reaffirming its objective of more than $2.2 billion in cumulative free cash flow for fiscal 2026-2028.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.07% due to these changes.
VGM Scores
Currently, The Cooper Companies has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise The Cooper Companies has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.