Cooper Companies (COO) to Post Q1 Earnings: What's in Store?
The Cooper Companies, Inc.’s COO first-quarter fiscal 2022 results are scheduled to release on Mar 3, after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.7%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
Q1 Estimates
For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $736.8 million, indicating an improvement of 8.3% from the year-ago quarter. The same for earnings stands at $3.08 per share, suggesting a decrease of 2.8% from the year-ago reported figure.
Factors to Note
Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both the segments displayed strength in the fiscal fourth quarter of 2021, and we expect this momentum to have sustained in the fiscal first quarter of 2022.
With respect to the CVI segment, solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals might have contributed to the segment’s performance in the quarter to be reported.
In fact, for fiscal 2022, CVI revenues are projected at $2.23-$2.27 billion (up 6% to 8% at a constant exchange rate). This strength is likely to get reflected in the to-be-reported quarter’s results.
The Cooper Companies, Inc. Price and EPS Surprise
The Cooper Companies, Inc. price-eps-surprise | The Cooper Companies, Inc. Quote
CSI displayed strength in the fiscal fourth quarter of 2021, with revenues of $194.3 million, up 11% from the year-ago period on both a constant currency and reported basis. The segment benefited from a strong fertility sub-segment, and office and surgical products. This momentum is likely to have continued in the fiscal first quarter as well. For fiscal 2022, CSI revenues are expected at $807-$823 million (up 6% to 8% at a constant exchange rate). This strength is likely to get reflected in the to-be-reported quarter results.
With respect to MiSight 1-day contact lens, per the fiscal-fourth quarter 2021 earnings call, the company witnessed revenue growth of 165%. The momentum may have sustained in the fiscal first quarter, courtesy of the excellent progress shown with its key accounts and entry into new pilot programs with retailers and buying groups globally.
Cooper Companies is advancing well through inorganic expansion.
In November 2021, Cooper Companies inked a deal to acquire Generate Life Sciences as it is a good strategic fit for Cooper Companies. The buyout will enable the company to better serve fertility clinics and Ob/Gyns with a broader suite of products and services.
In May, CooperSurgical acquired obp Medical Corporation — U.S. based medical device company that builds and markets differentiated products utilizing single-use vaginal speculums with integrated LED illumination. Per management, the buyout is a solid strategic fit that builds upon CooperSurgical’s robust portfolio of OB/GYN medical devices. In March, CooperSurgical acquired Safe Obstetric Systems, a privately-held manufacturer of the medical device — Fetal Pillow.
Apart from this, per the fiscal first-quarter 2021 earnings call, the company’s buyout of SightGlass Vision and collaboration with EssilorLuxottica is encouraging.
These developments may have favored the fiscal first-quarter performance.
Cooper Companies has been witnessing higher contact lenses demand, driven by the global transition to daily contact lenses by customers of late. The company has been making advancements in customized product offerings, which are likely to have contributed to the fiscal first-quarter performance.
What Our Quantitative Model Suggests
Per 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. This is the case here, as you will see below.
Earnings ESP: Cooper Companies has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Peer Releases
Some better-ranked stocks in the broader medical space that have announced quarterly results are Henry Schein, Inc. HSIC, Quidel Corporation QDEL and Bio-Rad Laboratories, Inc. BIO.
Henry Schein, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of $1.07 per share, which beat the Zacks Consensus Estimate by 18.9%. Revenues of $3.33 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.5%.
Quidel reported fourth-quarter 2021 adjusted EPS of $7.29, which surpassed the Zacks Consensus Estimate by 49.1%. Fourth-quarter revenues of $636.9 million outpaced the Zacks Consensus Estimate by 0.3%. It currently carries a Zacks Rank #1.
Quidel’s earnings yield of 8.4% compares favorably with the industry’s (0.7%). QDEL surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 129.4%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.
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