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.”
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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