The Cooper Companies, Inc. COO reported second-quarter fiscal 2022 adjusted earnings per share (EPS) of $3.24, which missed the Zacks Consensus Estimate of $3.41 by 4.9%. The bottom line declined 4% on a year-over-year basis.
GAAP EPS in the fiscal second quarter was $2.55, up 8.1% from the year-ago quarter.
Revenues of this Zacks Rank #4 (Sell) company were $829.8 million in the quarter under review, surpassing the Zacks Consensus Estimate by 1.4%. On a year-over-year basis, the top line improved 15% and surged 20% at constant currency (cc).
Fiscal Q2 Segment Details
The segment’s revenues totaled $553.8 million, up 11% at cc and 6% on a reported basis.
Per management, the segment witnessed an increase in revenues from Single-use sphere lenses (29% of CVI), reflecting an improvement of 17% at cc and 12% on a reported basis. Single-use sphere lenses revenues totaled $161.1 million.
Toric (34% of CVI) revenues amounted to $185.6 million, up 12% at cc and 7% on a reported basis.
Multifocal (12% of CVI) generated revenues of $66.4 million, up 20% at cc and 14% on a reported basis.
Non-single-use sphere (25% of CVI) revenues were $140.7 million, flat at cc while down 4% from the year-ago quarter.
Geographically, the segment witnessed an improvement in revenues in the Americas (40% of CVI), up 8% on a reported basis and 8% at cc to $223.5 million.
EMEA revenues (37% of CVI) amounted to $205.9 million, up 6% year over year and 15% at cc.
Asia Pacific sales (22% of CVI) improved 10% at cc and 3% year over year to $124.4 million.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote
The segment reported revenues of $276 million, up 44% at cc and 40% on a year-over-year basis.
Sub-segment Office and Surgical products (59% of CSI) generated $161.6 million in revenues, up 44% at cc and 43% on a year-over-year basis.
Fertility (41% of CSI) revenues were $114.4 million, up 36% year over year and 45% at cc.
In the fiscal second quarter, gross profit was $532.5 million, up 9.3% year over year. Adjusted gross margin was 67% of net revenues, down 100 basis points (bps) year over year.
Meanwhile, selling, general and administrative expenses rose 12.8% to $322.4 million. Research and development expenses increased 25.2% year over year to $26.3 million.
Operating income in the quarter totaled $132.7 million, which fell 7.3% year over year. Adjusted operating margin was 24%, down 300 bps from the prior-year quarter.
The company exited the second quarter of fiscal 2022 with cash and cash equivalents of $399.2 million, up from $280.7 million at the end of fiscal first-quarter 2022.
Cumulative net cash provided by operating activities at the end of the fiscal second quarter was $131.8 million.
Fiscal 2022 Guidance
Cooper Companies has updated its financial guidance for the fiscal year 2022. It is to be noted that the outlook does not include the Cook Medical Reproductive Health buyout that was announced on Feb 7, 2022, as regulatory approval is pending.
For fiscal 2022, the company projects total revenues between $3.28 billion and $3.31 billion, thereby reflecting 9% to 10% organic growth. The Zacks Consensus Estimate for the same is currently pegged at $3.28 billion.
CVI revenues are estimated to be $2.23-$2.25 billion (organic growth of 10-11%). CSI revenues are expected to lie within $1.06-$1.07 billion, thereby implying organic growth of 6-7%.
Adjusted EPS is anticipated to be $13.09-$13.29. The Zacks Consensus Estimate for the same currently stands at $13.81.
Cooper Companies exited the fiscal second quarter on a strong note, wherein earnings missed the consensus mark, but revenues beat the same. The company witnessed solid performance across its core CVI and CSI units during the quarter under review, along with robust geographical performances. A solid financial outlook amid persistent pandemic-led challenges raises optimism.
Per management, the company continues to witness success with its daily silicone hydrogel lenses, which positions it as one of the leaders in the soft contact lens market. The company remains optimistic about its myopia management program, which comprises MiSight and Ortho K lenses, and sustained strength in fertility.
However, an increase in selling, general and administrative expenses is concerning. Contraction in both gross and operating margins is disappointing.
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have announced quarterly results are Bio-Rad Laboratories, Inc. BIO, AMN Healthcare Services, Inc. AMN and Masimo Corporation MASI.
Bio-Rad, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of $4.94, which beat the Zacks Consensus Estimate by 76.4%. Revenues of $700 million outpaced the consensus mark by 3.3%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) 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 58.9%.
AMN Healthcare, sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.
Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.
Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.4%.
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