Cooper Companies Earnings: Margins Expand with Strong Revenues, Profit Increases

The Cooper Companies Inc. (NYSE:COO) reported its results for the second quarter. Cooper Companies develops, manufactures, and markets healthcare products, primarily medical devices through its two business units: CooperVision and CooperSurgical.

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The Cooper Companies Inc. Earnings Cheat Sheet

Results: Net income for The Cooper Companies Inc. rose to $54.9 million ($1.12 per share) vs. $35.4 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 55.3% from the year-earlier quarter.

Revenue: Rose 5.9% to $344.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Cooper Companies Inc. fell short of the mean analyst estimate of $1.20 per share. Analysts were expecting revenue of $349.9 million.

Quoting Management: Commenting on the results, Robert S. Weiss, Cooper’s president and chief executive officer said, “I’m proud to report another strong quarter which included market share gains, improving margins, double-digit earnings growth and significant free cash flow generation. Additionally, as announced earlier this week, we have made a tender offer to acquire all of the shares of Origio, which would position CooperSurgical as a global leader in the in-vitro fertilization market. This acquisition, if completed, would continue our long history of adding shareholder value through strategic acquisitions.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 20.6% and in the fourth quarter of the last fiscal year, the figure rose 17.5%.

Revenue has increased for four consecutive quarters. Revenue increased 11.2% to $326.1 million in the first quarter. The figure rose 15.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 18.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 9 cents, and in the fourth quarter of the last fiscal year, it was ahead by 25 cents.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $1.30 per share from $1.29. The average estimate for the fiscal year is $5.09 per share, a rise from $4.97 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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