U.S. Markets open in 1 hr 10 mins

Cooper Cos. 3Q net income climbs 33 percent

NEW YORK (AP) -- Eye care and surgical products maker Cooper Cos. said that its net income jumped 33 percent in the fiscal third quarter on an income tax benefit and higher contact lens sales.

Revenue from its eye care unit rose as sales of silicone hydrogel lenses improved, and its surgical business benefited from greater sales of fertility products.

The Pleasanton, Calif., company said late Thursday that it earned $89 million, or $1.79 per share, for the three months ended July 31. That's up from $66.9 million, or $1.36 per share, a year ago.

Cooper said it recorded a $2.5 million income tax benefit during the third quarter because it expects a lower tax rate during the current fiscal year. Excluding one-time items, the company said it earned $1.74 per share in the latest quarter.

Analysts surveyed by FactSet were expecting earnings of $1.71 per share.

Revenue rose 9 percent to $412 million from $378.2 million. Analysts expected revenue of $411.4 million, according to FactSet.

Revenue from the company's CooperVision business grew 5 percent to $330.5 million and CooperSurgical revenue grew 27 percent to $81.5 million.

But shares of Cooper Cos. fell $2.28, or 1.7 percent, to $130.97 in afternoon trading Friday.

Raymond James analyst Lawrence Keusch said the company had a "messy" quarter with disappointing operating income and a lower tax rate. But he said Cooper is gaining market share.

He maintained an "Outperform" rating on Cooper stock and raised his price target to $145 per share from $140.

Cooper said it expects to earn $6.23 to $6.28 per share this year, up from $6.15 to $6.20 per share. The company narrowed its revenue guidance to a range of $1.59 billion to $1.6 billion from $1.58 billion to $1.61 billion.

Analysts are forecasting earnings of $6.26 per share on $1.6 billion in revenue.