Cooper Companies Q1 Earnings Likely to Reflect Seasonal Trends

The Cooper Companies, Inc.’s COO first-quarter fiscal 2025 results are scheduled to be released on Mar. 6, after the closing bell.In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.00%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.87%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q1 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $982 million, indicating a 5.4% increase from the year-ago quarter’s level. The consensus mark for earnings is pinned at 92 cents per share, implying an 8.2% improvement from the prior-year period’s reported number.Factors to NoteCooper Companies reports revenues under two major segments — CooperVision (“CVI”) and CooperSurgical (“CSI”). Both these segments have displayed strength in the past few quarters. Overall, the quarterly results are expected to follow seasonal trends, with a lighter start compared to the last two reported quarters. The company remains focused on expanding MyDay production, scaling MiSight globally, sustaining fertility growth and managing challenges in PARAGARD while maintaining a disciplined approach to margin improvements and operational efficiency.In fourth-quarter 2024, the CVI segment delivered solid growth, driven by strong performance in silicone hydrogel daily lenses, particularly MyDay and clariti. MyDay, in particular, saw high demand across its portfolio of spheres, torics, and multifocals, with MyDay Energys performing well in the United States. Supply constraints for MyDay continue to be a limiting factor and might have hurt first-quarter performance.However, management remains optimistic as new manufacturing lines come online throughout the year to improve availability and meet demand. The company expects CVI to grow 6.5-8.5% organically for the full year, with steady progress in the first quarter. Our model projects 7.1% organic growth for the segment sales in the quarter. Segmental operating income is likely to improve 16.3% year over year, per the Zacks model estimates.The Cooper Companies, Inc. Price and EPS Surprise The Cooper Companies, Inc. price-eps-surprise | The Cooper Companies, Inc. QuoteThe myopia management business saw strong momentum in the fourth quarter, with MiSight growing 24%. October was its second-highest revenue month ever, benefiting from back-to-school fitting activity, though inventory contraction in the United States slightly affected results. MiSight is expected to have continued its growth trajectory in the soon-to-be-reported quarter, with management forecasting approximately 40% growth for fiscal 2025, supported by expansion in key markets such as the United States, the U.K., Korea and Europe.Within the CSI segment, the fertility business posted 15% growth (13% organically) in the last reported quarter, driven by consumables, capital equipment, reproductive genetic testing and donor activity. The segment benefited from strong demand and technological advancements, including AI-driven reproductive genomics.Fertility sales are expected to have resulted in high single-digit growth in the fiscal first quarter of 2025 as well as throughout the year, supported by favorable macroeconomic trends, increasing access to treatments, and a growing patient base. Our model projects 4.6% organic growth for the segment sales in the fiscal first quarter. Segment operating income is likely to improve 36% year over year, per the Zacks model estimates.Conversely, PARAGARD, CooperSurgical’s non-hormonal IUD, faced a 10% decline in the fourth quarter due to increased competition from alternative birth control options. PARAGARD sales are likely to have remained under pressure in the fiscal first quarter, with a flat or slightly down year-over-year performance.Financially, the gross margin improved to 66.9% in the fourth quarter, benefiting from price increases and efficiency gains. Gross margin is likely to have expanded during the soon-to-be-reported quarter, supported by higher production levels and cost control initiatives.Operating income, which grew 16.2% in the fourth quarter, is anticipated to gain 10-12% in fiscal 2025, implying a stable trajectory in the fiscal first quarter. Foreign exchange is likely to have been a headwind, impacting revenues by 1.5% and EPS by 4% in the soon-to-be-reported quarter. Per our model estimates, adjusted gross and operating margins are projected to be 66.2% and 24.1%, respectively, for the first quarter.What Our Quantitative Model SuggestsPer our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.Earnings ESP: The Copper Companies has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #4 (Sell) at present.Stocks Worth a LookHere are a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.Auna S.A. AUNA has an Earnings ESP of +26.67% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AUNA delivered a trailing four-quarter average earnings surprise of -28.25%. The Zacks Consensus Estimate for fourth-quarter EPS is pegged at 15 cents.Valneva VALN has an Earnings ESP of +22.73% and a Zacks Rank #3 at present. The company is expected to release fourth-quarter 2024 results this month. Its earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being -69.82%. The Zacks Consensus Estimate for EPS implies an improvement of 56% from the year-ago reported figure.Ocugen OCGN has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The company is scheduled to release fourth-quarter 2024 results in March.OCGN delivered a trailing four-quarter average earnings surprise of 16.67%. The Zacks Consensus Estimate for fourth-quarter EPS implies a decline of 25% from the year-ago reported figure.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 The Cooper Companies, Inc. (COO): Free Stock Analysis Report Ocugen, Inc. (OCGN): Free Stock Analysis Report Valneva SE Sponsored ADR (VALN): Free Stock Analysis Report Auna S.A. (AUNA): 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