The Cooper Companies’ (COO - Free Report) first-quarter fiscal 2019 results are scheduled to release on Mar 5, after market close.
The company expects to gain from segmental growth in the quarter.
Fiscal Q4 Results at a Glance
In the last reported quarter, the company reported earnings of $2.87 per share, missing the Zacks Consensus Estimate by 3%. However, earnings increased 8.3% on a year-over-year basis.
The California-based specialty medical device company reported revenues worth $651.5 million, surpassing the Zacks Consensus Estimate of $645.8 million. On a year-over-year basis, revenues improved 16%.
Which Way Are Q1 Estimates Trending?
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $618.5 million, reflecting year-over-year growth of 4.8%. The same for earnings is pegged at $2.50, showing a year-over-year decline of 10.4%.
Factors at Play
Cooper Companies reports revenues through two major segments — CooperVision (CVI) and CooperSurgical (CSI).
CVI’s Toric and Multifocal lenses, which make Cooper Companies a stalwart in the soft contact lenses market, are expected to drive fiscal first-quarter results. Additionally, CSI’s Surgical and Fertility product portfolio can fuel growth.
Notably, in the last reported quarter, CVI accounted for 73.8% of net revenues. The segment’s revenues totaled $480.6 million, up 10% on a pro forma basis and 9% year over year.
Additionally, in the last reported quarter, CSI accounted for 26.2% of net sales. Revenues at the segment came in at $170.9 million, up 5% at pro forma and 40% year over year.
It is encouraging to note that for 2019, the company expects CVI revenues within $1,940 million and $1,980 million. The same from CSI are anticipated within $660-$680 million.
Cooper Companies expects fiscal 2019 revenues within $2,600-$2,660 million. The mid-point of $2,630 million lies below the Zacks Consensus Estimate of $2.64 billion.
The company also expects adjusted earnings per share between $11.30 and $11.70. The midpoint of $11.50 is below the Zacks Consensus Estimate of $11.55.
What Does Our Model Predict?
Our quantitative model indicates a positive earnings surprise for Cooper Companies. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. This is exactly the case here.
Earnings ESP: The Earnings ESP for Cooper Companies is +0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cooper Companies carries a Zacks Rank #3.
Other Stocks With a Favorable Combination
Here are a few stocks, which per our model, also have the right combination of elements to post earnings beat this quarter:
AZUL SA (AZUL - Free Report) has an Earnings ESP of 7.22% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cara Therapeutics, Inc. (CARA - Free Report) has an Earnings ESP of 11.36% and a Zacks Rank #2.
Chico’s FAS, Inc. (CHS - Free Report) has an Earnings ESP of 2.17% and a Zacks Rank #2.
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