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Cooper Companies (COO) Q1 Earnings & Revenues Top Estimates

The Cooper Companies, Inc. COO reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of $3.17, which beat the Zacks Consensus Estimate of $2.77 by 14.4%. Moreover, the bottom line improved 17.8% on a year-over-year basis.

Revenue Details

Revenues of this Zacks Rank #2 (Buy) company were $680.5 million for the quarter, surpassing the Zacks Consensus Estimate by 3.1%. Also, the top line rose 5.3% from the year-ago quarter.

Fiscal Q1 Segment Details

CooperVision (CVI)

The segment’s revenues totaled $507 million, up 1% at constant currency (cc) and 4% on a reported basis.

Per management, the segment saw an increase in revenues from Single-use sphere lenses (29% of CVI), reflecting an improvement of 2% at cc and 6% on a reported basis. Single-use sphere lenses revenues totaled $146 million.

Toric (32% of CVI) revenues amounted to $162.3 million, up 2% at cc and 5% on a reported basis.

Multifocal (11% of CVI) generated revenues of $57.7 million, up 7% at cc and 11% on a reported basis.

The Cooper Companies, Inc. Price, Consensus and EPS Surprise

The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies, Inc. Price, Consensus and EPS Surprise

The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote

Non-single-use sphere (28% of CVI) revenues were $141 million, down 2% at cc but up 1% from the year-ago quarter.

Geographically, the segment witnessed an improvement in revenues in the Americas (40% of CVI), both up 6% at cc and on a reported basis to $200.4 million.

EMEA revenues (37% of CVI) totaled $188.8 million, down 4% at cc. However, the figure was up 1% from the prior-year quarter.

Asia Pacific sales (23% of CVI) improved 3% at cc and 8% year over year to $117.8 million.

CooperSurgical (CSI)

The segment reported revenues of $173.5 million, up 7% at cc and 8% on a year-over-year basis.

Sub-segment Office and Surgical products (60% of CSI) accounted for $103.5 million in revenues, up 5% at cc and on a year-over-year basis.

Fertility (40% of CSI) revenues were $70 million, up 12% year over year and 10% at cc.

Margin Analysis

In the fiscal first quarter, gross profit was $450.7 million, up 5.7% year over year. Adjusted gross margin was 68% of net revenues, up 100 basis points (bps) year over year.

Operating income in the quarter totaled $133.4 million, which improved 20.1% year over year. Adjused operating margin was 27%, up 200 bps from the prior-year quarter.

Financial Position

The company exited the quarter with cash and cash equivalents of $119.1 million, up from $115.9 million on a sequential basis.

Free cash flow amounted to $91.8 million in the quarter under review.

Fiscal 2021 Guidance

Cooper Companies has provided its fiscal year 2021 guidance taking into account the significant risk stemming from the resurgence in COVID-19 cases.

For fiscal 2021, the company projects total revenues between $2.80 billion and $2.85 billion (up 12% to 14% on cc basis). The Zacks Consensus Estimate for the same is pegged at $2.76 billion.

While CVI revenues are estimated to be $2.09-$2.12 billion (up 9% to 11% cc), CSI revenues are expected to be $710-$725 million (up 19% to 22% cc).

Adjusted EPS is anticipated between $12.90 and $13.10. The Zacks Consensus Estimate for the same stands at $12.55.

Wrapping Up

Cooper Companies exited the fiscal first quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. The company witnessed solid performance across its core CVI and CSI units during the quarter under review. Expansion in both gross and operating margins is a positive.

Per management, the company continues to witness success with its daily silicone hydrogel lenses that makes it one of the leaders in the soft contact lens market. Also, the company remains optimistic about its myopia management program, which comprises MiSight and Ortho K lenses.

However, Non-single-use sphere sales were soft, and CVI revenues declined in EMEA at cc.

Earnings of Other MedTech Majors at a Glance

Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are HillRom Holdings, Inc. HRC, Abbott Laboratories ABT and AngioDynamics, Inc. ANGO, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hill-Rom reported first-quarter fiscal 2021 adjusted EPS of $1.53, beating the Zacks Consensus Estimate by 45.7%. Revenues of $741.1 million surpassed the consensus mark by 13.2%.

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which beat the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.

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