What's in Store for Cooper Companies (COO) in Q4 Earnings?
The Cooper Companies, Inc.’s COO fourth-quarter fiscal 2023 results are scheduled to be released on Dec 7, after the closing bell.
In the last reported quarter, the company’s earnings were in line with estimates. COO’s earnings beat estimates in two of the trailing four quarters, missed in one and met in the other, delivering an average surprise of 0.09%.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $919.7 million, indicating an 8.4% increase from the year-ago quarter’s level. The same for earnings is pinned at $3.47 per share, implying a 26.2% improvement from the prior-year period’s reported number.
Factors to Note
Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both these segments displayed strength in the past few quarters. This trend is likely to have continued in the fiscal fourth quarter as well.
Solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals are expected to have contributed to CVI’s performance.
The segment’s revenues for fiscal 2023 are projected to be in the range of $2.414-$2.425 billion (organic growth of 10-11%). This momentum is likely to be reflected in the upcoming results.
CSI displayed strength in the fiscal third quarter, with revenues of $300 million. The top line increased 9% year over year on a constant currency basis and 8% on a reported basis.
The segment benefited from fertility as well as surgical products. This trend is likely to have continued in the quarter to be reported.
For fiscal 2023, CSI revenues are expected to be in the range of $1.164-$1.17 billion (5-7% organic growth). This strength is likely to get reflected in the upcoming quarterly results.
During the fiscal third quarter, the company witnessed a significant increase in revenues with respect to MyDay daily silicone hydrogel lenses. The momentum is likely to have continued in the fiscal fourth 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 demand for contact lenses, driven by the recent global transition to daily contact lenses by customers. The company’s advancements in customized product offerings are expected to have contributed to its fiscal fourth-quarter performance.
The Cooper Companies, Inc. Price and Consensus
The Cooper Companies, Inc. price-consensus-chart | The Cooper Companies, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Cooper Companies this time around. 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 ($3.42 per share) and the Zacks Consensus Estimate, is -1.47% for Cooper Companies.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Cooper Companies currently carries a Zacks Rank #3.
Stocks Worth a Look
Align Technology ALGN has an Earnings ESP of +3.59% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALGN has an estimated revenue growth rate of 6% for fiscal 2024. It delivered a trailing four-quarter average earnings surprise of 6.53%.
Cardinal Health CAH has an Earnings ESP of +0.24% and a Zacks Rank #3 at present. CAH has an estimated earnings growth rate of 19% for fiscal 2024.
Cardinal health delivered a trailing four-quarter average earnings surprise of 15.67%.
Nevro NVRO has an Earnings ESP of +8.12% and a Zacks Rank #2 at present. NVRO has an estimated earnings growth rate of 17.5% for 2024.
Nevro’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, delivering an average surprise of 2.87%.
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Align Technology, Inc. (ALGN) : Free Stock Analysis Report
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Nevro Corp. (NVRO) : Free Stock Analysis Report
