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Cooper Companies (COO) to Post Q3 Earnings: What's in Store?

The Cooper Companies, Inc.’s COO third-quarter fiscal 2022 results are scheduled to be released on Aug 31, after the closing bell.

In the last reported quarter, the company delivered a negative earnings surprise of 4.99%. Its earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.22%.

Q3 Estimates

For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $833.1 million, indicating an improvement of 9.1% from the year-ago quarter. The same for earnings stands at $3.23 per share, suggesting a decline of 5.3% 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 first half of 2022 and we expect this momentum to have continued in the fiscal third 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 in the range of $2.23-$2.25 billion (organic growth of 10% to 11%). This strength is likely to get reflected in the to-be-reported quarter’s results.

CSI displayed strength in the fiscal second quarter of 2022, with revenues of $276 million, up 44% from the year-ago period on a constant currency basis and 40% on a reported basis. The segment benefited from a sub-segment office and surgical products. This momentum is likely to have continued in the fiscal third quarter as well. For fiscal 2022, CSI revenues are expected in the range of $1.06-$1.07 billion (6% to 7% organic growth). This strength is likely to have favored the to-be-reported quarter performance.

The Cooper Companies, Inc. Price

The Cooper Companies, Inc. Price
The Cooper Companies, Inc. Price

The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote

With respect to MiSight's 1-day contact lens, as discussed on the fiscal second-quarter 2022 earnings call, the company witnessed revenue growth of 144%. The momentum may have sustained in the fiscal third quarter, courtesy of the excellent progress of its key accounts and entry into new pilot programs with retailers and buying groups globally.

Cooper Companies has been witnessing higher contact lens 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 third-quarter performance.

In December 2021, Cooper Companies acquired Generate Life Sciences as it is a good strategic fit for the company. COO incurred higher operating expenses due to this acquisition that are likely to have sustained in the soon-to-be-reported quarter.

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 not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.19 per share) and the Zacks Consensus Estimate ($3.23 per share), is -1.11%. 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 stocks in the broader medical space that have announced quarterly results are Bio-Rad Laboratories, Inc. BIO, AMN Healthcare Services, Inc. AMN and AmerisourceBergen ABC.

Bio-Rad, carrying a Zacks Rank #2, reported second-quarter 2022 adjusted EPS of $3.38, which beat the Zacks Consensus Estimate by 37.4%. Revenues of $691 million outpaced the consensus mark by 3.9%. You can see the complete list of today's Zacks #1 Rank stocks here.

Bio-Rad has a historical earnings growth rate of 31.2%. BIO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 46.75%.

AMN Healthcare, sporting a Zacks Rank #1, reported second-quarter 2022 adjusted EPS of $3.31, which beat the Zacks Consensus Estimate by 11.8%. Revenues of $1.43 billion outpaced the consensus mark by 4.8%.

AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.66%.

AmerisourceBergen reported fiscal third-quarter 2022 adjusted EPS of $2.62, which surpassed the Zacks Consensus Estimate by 2%. Revenues of $60.07 billion outpaced the Zacks Consensus Estimate by 1.5%. It currently carries a Zacks Rank #2.

AmerisourceBergen has an earnings yield of 7.4% compared with the industry’s yield of 4.2%. ABC’s earnings surpassed estimates in three of the trailing four quarters and missing once, the average surprise being 2.63%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
 
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