Cooper Companies Q4 Earnings Beat, Revenues Miss, Stock Falls

The Cooper Companies, Inc. COO delivered fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.04, which improved 19.5% year over year. The figure surpassed the Zacks Consensus Estimate by 4%.GAAP EPS for the quarter was 58 cents, reflecting a 38.1% increase from the year-ago figure.COO’s Revenues in DetailCooper Companies registered revenues of $1.02 billion in the fiscal fourth quarter, up 9.8% year over year on a reported basis. The figure missed the Zacks Consensus Estimate by 0.9%.The quarterly revenues were up 9% at constant exchange rate (CER) and 7% organically year over year.Robust segmental performances drove the top line in the fiscal fourth quarter.Cooper Companies’ Segmental DetailsCOO conducts its business via two reportable segments — CooperVision (CVI) and CooperSurgical (CSI).For the fourth quarter of fiscal 2024, the CVI segment’s revenues totaled $676.4 million, up 9% on a reported basis and up % at CER as well as organically year over year. This figure compares to our segmental projection of $674 million.Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.In the fiscal fourth quarter, Toric and multifocal revenues totaled $323.2 million, up 9% year over year on a reported basis, organically and at CER. This figure compares to our projection of $322 million.Sphere, other revenues in the fiscal fourth quarter totaled $353.2 million, up 8% year over year on a reported basis and up 7% at CER as well as organically. This figure compares to our projection of $352 million.Geographically, CVI derives revenues from the Americas, Europe, the Middle East, and Africa (EMEA) and Asia Pacific.In the fiscal fourth quarter, Americas revenues totaled $270.5 million, up 5% on a reported basis and 6% at CER and organically year over year. The figure compares to our projection of $274.8 million.EMEA revenues in the fiscal fourth quarter amounted to $256.6 million, up 14% year over year on a reported basis and up 11% at CER and organically. This figure compares to our projection of $253 million.Asia Pacific revenues in the fiscal fourth quarter totaled $149.3 million, up 7% year over year organically as well as at CER. This figure compares to our projection of $146.2 million.The CSI segment’s revenues totaled $342 million, up 12% both reportedly and at CER, and 5% organically. This figure compares to our projection of $317.8 million.Category-wise, CSI derives revenues from Office and surgical, and Fertility.In the fiscal fourth quarter, Office and surgical revenues totaled $202.8 million, up 11% on a reported basis, 11% at CER and flat organically. This figure compares to our projection of $191.3 million.Fertility revenues in the fiscal fourth quarter amounted to $139.2 million, up 15% on a reported basis as well as at CER and up 13% organically year over year. This figure compares to our projection of $126.5 million.COO’s Margin Trend   In the quarter under review, Cooper Companies’ adjusted gross profit rose 10.2% to $681.6 million. The adjusted gross margin was flat at 67%. We had projected 65.9% of gross margin for the fiscal fourth quarter.Selling, general and administrative expenses rose 1% to $391.4 million. Research and development expenses increased 2.7% to $37.7 million. Adjusted operating costs totaled $418.3 million, reflecting a 6.7% increase from the prior-year quarter’s level.Adjusted operating profit totaled $263.3 million, reflecting a 16.2% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal fourth quarter expanded 200 bps to 26%.The Cooper Companies, Inc. Price, Consensus and EPS Surprise The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. QuoteCooper Companies’ Financial PositionCOO exited fourth-quarter fiscal 2024 with cash and cash equivalents of $107.6 million compared with $109.7 million at the end of the fiscal third quarter.Total debt at the end of the fiscal fourth quarter was $2.58 billion compared with $2.63 billion at the end of the fiscal third quarter.COO’s GuidanceCooper Companies has provided its financial 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 $4.18 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 $1,286-$1,294 million, indicating an organic improvement of 5.5-6.5% from the year-earlier figure.For the entire fiscal year, adjusted EPS is expected to be in the $3.92-$4.02 range. The Zacks Consensus Estimate is pegged at $4.03.Our TakeCooper Companies exited the fourth quarter of fiscal 2024 with mixed performance as earnings beat estimates but revenues missed the same. Moreover, both revenues and earnings guidance for fiscal 2025 fell short of market expectations. This likely led to a decline of 5.1% in COO’s share price during the after-hours trading on Dec. 05, following the earnings release.Meanwhile, a decline in PARAGUARD sales due to the rise in competition from other birth control options raises concern. An unexpected softness in torics and multifocals demand during the end of the fiscal fourth quarter may continue into the fiscal first quarter, hurting sales for this business. The back-to-school season has helped the company accelerate sales growth during the second half of fiscal 2024. With the season coming to an end, the first half of fiscal 2025 is likely to see a slowdown in sales growth. Moreover, U.S. inventory contraction in October hurt myopia management sales during the fourth quarter, a trend that is likely to continue into the first quarter of fiscal 2025.However, the uptick in overall revenues and bottom line was also impressive. CVI segment’s geographical performances were also encouraging. Launch of MyDay multifocal in international markets should aid sales growth in fiscal 2025. The expansion of gross and operating margins on a reported basis bodes well for the stock. Improving price for contact lens is likely to help COO offset the cost of materials going forward.Cooper Companies’ Zacks Rank and Stocks to ConsiderCOO currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. CAH, ResMed Inc. RMD and Globus Medical, Inc. GMED .Cardinal Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2025 adjusted EPS of $1.88, which beat the Zacks Consensus Estimate by 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Revenues of $52.28 billion outpaced the consensus mark by 1.9%. Cardinal Health has a long-term estimated growth rate of 10.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.2%.ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, which beat the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.ResMed has a long-term estimated growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.4%.Globus Medical reported third-quarter 2024 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 27.7%. Revenues of $625.7 million surpassed the Zacks Consensus Estimate by 3.4%. It currently carries a Zacks Rank #2.Globus Medical has a long-term estimated growth rate of 14.1%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.7%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Cardinal Health, Inc. (CAH): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Globus Medical, Inc. 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