The Cooper Companies (COO) Up 3.6% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for The Cooper Companies (COO). Shares have added about 3.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is The Cooper Companies due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for The Cooper Companies, Inc. before we dive into how investors and analysts have reacted as of late.COO Q3 Earnings Beat, 2025 Sales Outlook LoweredThe Cooper Companies delivered third-quarter fiscal 2025 adjusted earnings per share of $1.10, which improved 15% year over year. The figure beat the Zacks Consensus Estimate of $1.07 by 2.8%. Operational improvements drove the bottom-line growth.GAAP adjusted earnings per share for the quarter was 49 cents, down 6% year over year.COO’s Revenues in DetailRevenues totaled $1.06 billion, up 6% year over year on a reported basis. The figure, however, missed the Zacks Consensus Estimate by 0.5%.The quarterly revenues were up 3% year over year at constant exchange rate (CER) and 2% on an organic basis.The lower-than-expected top-line performance was mainly due to weakness in Clariti sales, caused by a noticeable drop in Asia Pac and a slowdown in the Americas and EMEA.Cooper Companies’ Segmental DetailsFor the third quarter of fiscal 2025, the CVI segment’s revenues totaled $718.4 million, up 6% year over year on a reported basis and 2% at CER as well as organically. This figure compares to our segmental projection of $717.6 million.Growth was led by strong momentum in MyDAY, which posted double-digit gains with multifocal lenses rising 20%, and continued strength in MiSight myopia management lenses, which grew 23% and delivered a record quarter in EMEA.Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.In the fiscal third quarter, Toric and multifocal revenues totaled $358.8 million, up 10% year over year on a reported basis, and up 6% organically as well as at CER. This figure compares to our projection of $355.6 million.Sphere, other revenues totaled $359.6 million, up 3% year over year on a reported basis but down 1% at CER as well as organically. This figure compares to our projection of $361.9 million.Geographically, CVI derives revenues from the Americas, Europe, and Asia Pacific.Americas revenues totaled $286 million, up 2% year over year on a reported basis and up 3% at CER and organically. The figure compares to our projection of $296.9 million.EMEA revenues amounted to $292.1 million, up 14% year over year on a reported basis and up 6% at CER and organically. This figure compares to our projection of $271.2 million.Asia Pacific revenues in the fiscal third quarter totaled $140.3 million, up 1% year over year reportedly but down 5% organically and at CER due to Clariti weakness and softness in e-commerce channels. This figure compares to our projection of $149.5 million.The CSI segment’s revenues totaled $341.9 million, which moved up 4% on a reported basis as well as at CER, and 2% organically. This figure compares to our projection of $344.4 million.Category-wise, CSI derives revenues from Office and surgical, and Fertility.In the fiscal third quarter, Office and surgical revenues totaled $204.8 million, up 3% on a reported basis and at CER, and up 1% organically. This figure compares to our projection of $193.4 million. Sales in this category are benefiting from double-digit growth in the labor and delivery portfolio and robust momentum in specialty surgical devices, including a 23% gain from obp Surgical. However, PARAGARD sales declined 10% following advanced purchases earlier in the year.Fertility revenues in the fiscal third quarter amounted to $137.1 million, up 6% on a reported basis, up 3% organically and up 4% at CER year over year, supported by genomics and consumables and market share gains in EMEA. This figure compares to our projection of $133.2 million.COO’s Margin TrendIn the quarter under review, Cooper Companies’ adjusted gross profit rose 6.8% to $713.4 million. The adjusted gross margin expanded almost 100 basis points (bps) to 67%, supported by favorable product mix, efficiency gains and FX tailwinds. We had projected 67.8% of gross margin for the fiscal third quarter.Selling, general and administrative expenses rose 10.7% to $421.7 million. Research and development expenses increased 14.4% to $44.6 million. Adjusted operating costs totaled $437 million, reflecting a 6.2% increase from the prior-year quarter’s level.Adjusted operating profit totaled $276.4 million, reflecting an 11% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal third quarter remained flat at 26%.Cooper Companies’ Financial PositionCOO exited the third quarter of fiscal 2025 with cash and cash equivalents of $124.9 million compared with $116.2 million at the end of the fiscal second quarter.Total debt at the end of the fiscal third quarter was $2.48 billion compared with $2.77 billion at the end of the fiscal second quarter.COO’s GuidanceCooper Companies has updated its outlook for fiscal 2025.The company now expects revenues to be in the range of $4,076-$4,096 million (prior $4,107-$4,146 million), suggesting an organic improvement of 4-4.5% from the prior-year figure.COO expects the CVI segment’s revenues to be in the range of $2,734-$2,747 million (previously $2,759-$2,786 million), suggesting an organic improvement of 4-5% from the year-earlier registered figure.The company anticipates the CSI segment’s revenues to be in the range of $1,343-$1,349 million (prior $1,347-$1,359 million), indicating an organic improvement of 3-3.5% from the year-earlier figure.For the entire fiscal year, adjusted adjusted earnings per share is expected to be in the $4.08-$4.12 range (previously $4.05-$4.11).How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.VGM ScoresAt this time, The Cooper Companies has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, The Cooper Companies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cooper Companies, Inc. (COO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks