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Cooper Companies (COO) to Post Q4 Earnings: What's in Store?

The Cooper Companies, Inc.’s COO fourth-quarter fiscal 2022 results are scheduled to be released on Dec 8, after the closing bell.

In the last reported quarter, the company delivered a negative earnings surprise of 0.31%. Its earnings missed estimates in three of the trailing four quarters and beat once, the average negative surprise being 0.70%.

Q4 Estimates

For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $839.5 million, indicating an improvement of 10.6% from the year-ago quarter. The same for earnings stands at $3.10 per share, suggesting a decline of 5.5% from the year-ago reported figure.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both segments displayed strength in the first three quarters of fiscal 2022 and we expect this momentum to have continued in the fiscal fourth quarter.

With respect to the CVI segment, solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals might have contributed to the segment’s performance in the quarter to be reported.

In fact, for fiscal 2022, CVI revenues are projected in the range of $2.24-$2.25 billion (organic growth of 11% to 12%). This strength is likely to get reflected in the to-be-reported quarter’s results.

CSI displayed strength in the fiscal third quarter of 2022, with revenues of $277 million. Revenues increased 39% from the year-ago period on a constant currency basis and 35% on a reported basis. The segment benefited from fertility products and surgical products. This momentum is likely to have continued in the fiscal fourth quarter as well. For fiscal 2022, CSI revenues are expected in the range of $1.055-$1.064 billion (7% to 8% organic growth). This strength is likely to have prevailed in the to-be-reported quarter’s performance.

The Cooper Companies, Inc. Price and Consensus

The Cooper Companies, Inc. Price and Consensus
The Cooper Companies, Inc. Price and Consensus

The Cooper Companies, Inc. price-consensus-chart | The Cooper Companies, Inc. Quote

With respect to MiSight's 1-day contact lens, as discussed on the fiscal third-quarter 2022 earnings call, the company witnessed revenue growth of 109%. The momentum may have sustained 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 contact lens demand, driven by the global transition to daily contact lenses by customers of late. The company has been making advancements in customized product offerings, which are likely to have contributed to the fiscal fourth-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, 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 and the Zacks Consensus Estimate, is -0.05%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Peer Releases

Some stocks in the broader medical space that have announced quarterly results are McKesson MCK, AMN Healthcare Services, Inc. AMN and ShockWave Medical SWAV.

McKesson, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $6.06, which missed the Zacks Consensus Estimate by 1.14%. Revenues of $69.7 billion outpaced the consensus mark by 0.71%. You can see the complete list of today's Zacks #1 Rank stocks here.

McKesson has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed twice, the average surprise being 4.79%.

AMN Healthcare, sporting a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 4%.

AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 10.96%.

ShockWave Medical reported third-quarter 2022 adjusted EPS of 92 cents, which surpassed the Zacks Consensus Estimate by 35.29%. Revenues of $131 million outpaced the Zacks Consensus Estimate by 4.36%. It currently carries a Zacks Rank #2.

ShockWave Medical has an earnings yield of 1.2% compared with the industry’s yield of (8%). SWAV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 146.10%.

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McKesson Corporation (MCK) : Free Stock Analysis Report

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ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report

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