The Cooper Companies Inc (COO) Reports Organic Revenue Growth and EPS Increase in Q4
Q4 2023 revenue rose by 9% to $927.1 million, with organic growth also at 9%.
Full year revenue reached $3.6 billion, marking a 9% increase, or 10% organically.
Q4 GAAP diluted EPS climbed by 29% to $1.70, while non-GAAP diluted EPS grew by 26% to $3.47.
Announced a four-for-one stock split to enhance stock accessibility, effective February 16, 2024.
On December 7, 2023, The Cooper Companies Inc (NASDAQ:COO) released its 8-K filing, announcing financial results for the fiscal fourth quarter and full year ended October 31, 2023. The company reported a robust 9% increase in Q4 revenue, reaching $927.1 million, and a full-year revenue surge to $3.6 billion, up by the same percentage. Organic growth was similarly strong, at 9% for the quarter and 10% for the year.
Financial Performance and Key Metrics
The Cooper Companies Inc (NASDAQ:COO) experienced a significant uptick in its Q4 GAAP diluted earnings per share (EPS), which rose by 29% to $1.70. For the full fiscal year, however, GAAP diluted EPS saw a 24% decrease to $5.91. In contrast, non-GAAP diluted EPS for Q4 showed a robust increase of 26% to $3.47, with the full-year non-GAAP diluted EPS climbing modestly by 3% to $12.81.
President and CEO Al White commented on the company's performance, stating,
Fiscal 2023 was another year of record annual revenue driven by share gains in contact lenses and fertility. As we enter fiscal 2024, our teams remain focused on executing on our long-range strategic objectives including gaining market share, driving profitability, launching innovative products and services, and maintaining our fantastic Cooper culture."
Operational Highlights and Future Outlook
During the fourth quarter, The Cooper Companies Inc (NASDAQ:COO) achieved a gross margin of 65%, an improvement from 63% in the same quarter of the previous year. Non-GAAP gross margin also increased, reaching 67% due to better operational performance and favorable currency impacts. Operating margin for Q4 improved to 15% from 12% year-over-year, with non-GAAP operating margin rising to 24%.
Looking ahead, The Cooper Companies Inc (NASDAQ:COO) has initiated fiscal year 2024 financial guidance, projecting total revenue between $3,809 million and $3,877 million, which translates to an organic growth of 6% to 8%. Non-GAAP diluted EPS is expected to range from $13.60 to $14.00.
Segment Performance
For the fourth quarter, CooperVision (CVI) reported an 11% increase in revenue to $622.9 million, with organic growth also at 11%. CooperSurgical (CSI) saw a 6% rise in revenue to $304.2 million, with a 7% organic increase. Both segments demonstrated strong growth across various product categories and geographies.
Capital Management and Shareholder Returns
The company ended the quarter with net debt of $2.45 billion and generated free cash flow of $29.2 million. Notably, The Cooper Companies Inc (NASDAQ:COO) announced a four-for-one stock split to make stock ownership more accessible, effective after trading closes on February 16, 2024. Additionally, the board of directors decided to end the company's semi-annual dividend.
Overall, The Cooper Companies Inc (NASDAQ:COO) delivered a year of record revenue, underpinned by strategic share gains and operational efficiency. With a clear focus on long-term objectives and a commitment to innovation and culture, the company is poised for continued growth in the coming fiscal year.
Explore the complete 8-K earnings release (here) from The Cooper Companies Inc for further details.
This article first appeared on GuruFocus.
