Cooper Companies Q1 Earnings In Line, Revenues Miss, Stock Falls

The Cooper Companies, Inc.COO delivered first-quarter fiscal 2025 adjusted earnings per share (EPS) of 92 cents, which improved 8.2% year over year. The figure was in line with the Zacks Consensus Estimate.GAAP EPS for the quarter was 52 cents, reflecting a 26.8% increase from the year-ago figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.COO’s Revenues in DetailRevenues totaled $964.7 million, up 3.6% year over year on a reported basis. The figure, however, missed the Zacks Consensus Estimate by 1.7%.The quarterly revenues were up 5% year over year at constant exchange rate (CER) as well as on an organic basis.Robust segmental performances drove the top line in the fiscal first quarter.The Cooper Companies, Inc. Price, Consensus and EPS Surprise The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. QuoteCooper Companies’ Segmental DetailsCOO conducts its business via two reportable segments — CooperVision (“CVI”) and CooperSurgical (“CSI”).For the first quarter of fiscal 2025, the CVI segment’s revenues totaled $646.1 million, up 4% year over year on a reported basis and 6% at CER as well as organically. This figure compares to our segmental projection of $660 million.Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.In the fiscal first quarter, Toric and multifocal revenues totaled $319.4 million, up 7% year over year on a reported basis, and up 10% organically as well as at CER. This figure compares to our projection of $320 million.Sphere, other revenues totaled $326.7 million, up 1% year over year on a reported basis and up 3% at CER as well as organically. This figure compares to our projection of $340 million.Geographically, CVI derives revenues from the Americas, Europe, the Middle East, and Africa (EMEA) and Asia Pacific.Americas revenues totaled $270.9 million, up 7% year over year on a reported basis and up 8% at CER and organically. The figure compares to our projection of $270 million.EMEA revenues amounted to $246.5 million, up 3% year over year on a reported basis and up 6% at CER and organically. This figure compares to our projection of $250 million.Asia Pacific revenues in the fiscal first quarter totaled $128.7 million, up 4% year over year organically and 6% as at CER. This figure compares to our projection of $140 million.The CSI segment’s revenues totaled $318.6 million, which moved up 3% on a reported basis, 4% at CER and 2% organically. This figure compares to our projection of $322.7 million.Category-wise, CSI derives revenues from Office and surgical, and Fertility.In the fiscal first quarter, Office and surgical revenues totaled $198.9 million, up 4% on a reported basis and at CER, and up 2% organically. This figure compares to our projection of $195.8 million.Fertility revenues in the fiscal first quarter amounted to $119.7 million, up 1% on a reported basis as well as organically and up 3% at CER year over year. This figure compares to our projection of $126.8 million.COO’s Margin TrendIn the quarter under review, Cooper Companies’ adjusted gross profit rose 5.6% to $662.4 million. The adjusted gross margin expanded 200 basis points (bps) to 69%. We had projected 65.9% of gross margin for the fiscal first quarter.Selling, general and administrative expenses rose 1.8% to $387.3 million. Research and development expenses increased 3% to $40.7 million. Adjusted operating costs totaled $241.9 million, reflecting a 5.1% increase from the prior-year quarter’s level.Adjusted operating profit totaled $241.9 million, reflecting a 16.2% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal first quarter expanded 100 bps to 26%.Cooper Companies’ Financial PositionCOO exited first-quarter fiscal 2025 with cash and cash equivalents of $100.9 million compared with $107.6 million at the end of the fiscal fourth quarter.Total debt at the end of the fiscal first quarter was $2.59 billion compared with $2.58 billion at the end of the fiscal fourth quarter.COO’s GuidanceCooper Companies has provided its outlook for fiscal 2025.The company expects revenues to be in the range of $4,080-$4,158 million, suggesting an organic improvement of 6-8% 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 $2,733-$2,786 million, suggesting an organic improvement of 6.5-8.5% from the year-earlier registered figure.The company anticipates the CSI segment’s revenues to be in the range of $1,347-$1,372 million, indicating an organic improvement of 4-6% from the year-earlier figure.For the entire fiscal year, adjusted EPS is expected to be in the $3.94-$4.02 range. The Zacks Consensus Estimate is pegged at $3.98.Our TakeCooper Companies’ first-quarter fiscal 2025 earnings were in line with estimates but revenues missed the same. This likely led to a decline of 4.9% in COO’s share price during after-hours trading on March 06, following the earnings release.Image Source: Zacks Investment ResearchHowever, the company recorded year-over-year earnings and revenue growth, supported by margin improvements and strong operational execution. Key growth drivers included robust demand for MyDay daily silicone hydrogel lenses, particularly toric and multifocal variants, and a 20% expansion in the myopia management portfolio. CooperSurgical's fertility business is expected to rebound with high single-digit to low double-digit growth for the year.Meanwhile, COO faced challenges, including softer-than-expected revenues due to currency headwinds and a decline in China’s contact lens sales, although the myopia management business in China performed well.The company maintained its full-year revenue and EPS guidance, citing improved production capabilities and continued investment in product innovation. COO remains focused on margin expansion, leveraging efficiency gains in manufacturing and distribution, and driving free cash flow generation while prioritizing debt reduction. Despite near-term pressures, management expressed confidence in accelerating growth, particularly in the latter half of the year.The Cooper Companies’ Zacks Rank and Stocks to ConsiderCOO currently has a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy) each.Masimo’s shares have rallied 30.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have jumped 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks