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It has been about a month since the last earnings report for Cooper Cos. (COO). Shares have lost about 10.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cooper Cos. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cooper Companies Earnings Beat in Q3, EPS View Impressive
Cooper reported third-quarter fiscal 2019 adjusted EPS of $3.23, which surpassed the Zacks Consensus Estimate of $3.16. The bottom line increased 7.7% on a year-over-year basis.
Revenues of the company came in at $679.4 million, missing the Zacks Consensus Estimate of $686.9 million. However, on a year-over-year basis, the top line improved 2.9%.
Q3 Segment Details
CooperVision (CVI)
This segment’s revenues totaled $509.1 million, up 6% on a pro-forma basis and 4% on a reported basis.
Per management, the segment saw a noticeable uptick in the Single-use sphere lenses (29% of CVI), reflecting pro-forma growth of 9%, driven by accelerating growth in both Clariti and MyDay. Single-use sphere lenses revenues totaled $146.3 million.
Toric (32% of CVI) revenues totaled $163.1 million, up 8% on a pro-forma basis.
Multifocal (10% of CVI) generated revenues of $52.4 million, up 2% at pro forma and down 1% year over year.
Non single-use sphere (29% of CVI) revenues came in at $147.3 million, up 9% at pro forma and 6% from the year-ago quarter.
Geographically, the segment witnessed an improvement in revenues in the Americas (38% of CVI), up 5% at pro forma and 6% year over year to $195 million.
EMEA revenues (39% of CVI) totaled $196 million, up 3% at pro forma but down 2% from the prior-year quarter.
Asia Pacific sales (23% of CVI) rose 13% at pro forma and 12% year over year to $118.1 million.
CooperSurgical (CSI)
This segment posted revenues of $170.3 million, up 2% at pro forma and flat year over year.
Sub-segment Office and Surgical products (62% of CSI) accounted for $106.3 million revenues, up 2% on a year-over-year basis.
Fertility (38% of CSI) revenues were $64 million, down 4% year over year but up 5% at pro forma.
Margin Analysis
In the fiscal third quarter, gross profit was $450.7 million, up 5.6% year over year. Gross margin was 66.3% of net revenues, up 160 basis points (bps) year over year.
On an adjusted basis, gross margin was 67%, flat year over year.
Operating income in the quarter was $142.2 million, up 23% year over year. Adjusted operating margin was 28%, flat when compared to the prior-year quarter.