Core Insights - CooperCompanies reported strong margins, double-digit earnings growth, and robust free cash flow, although revenues were below expectations. The company raised its earnings guidance for the fiscal year 2025, anticipating improved revenue in Q4 and fiscal 2026 driven by MyDAY® [2][5]. Financial Performance - Total revenue for the third quarter of fiscal 2025 was $1,060.3 million, representing a 6% increase year-over-year. CooperVision (CVI) revenue was $718.4 million, up 6%, while CooperSurgical (CSI) revenue was $341.9 million, up 4% [5][6]. - GAAP diluted earnings per share (EPS) was $0.49, down 6% from the previous year, while non-GAAP diluted EPS increased by 15% to $1.10 [5][6]. - Gross margin was 65%, down from 66% year-over-year, primarily due to a product line exit at CooperSurgical. Non-GAAP gross margin improved by 70 basis points to 67% [6][19]. - Operating margin was 17%, down from 19% year-over-year, but non-GAAP operating margin increased by 60 basis points to 26% [6][19]. Revenue Breakdown - CooperVision revenue by category included: - Toric and multifocal lenses: $358.8 million, a 10% increase year-over-year - Sphere and other lenses: $359.6 million, a 3% increase year-over-year [4][7]. - Revenue by geography showed: - Americas: $286.0 million, a 2% increase year-over-year - EMEA: $292.1 million, a 14% increase year-over-year - Asia Pacific: $140.3 million, a 1% increase year-over-year [4][7]. Cash Flow and Share Repurchase - Cash provided by operations was $261.5 million, with capital expenditures of $96.9 million, resulting in free cash flow of $164.6 million [6][9]. - The company repurchased $52.1 million of common stock, approximately 724.3 thousand shares, under its existing share repurchase program [9]. Fiscal Year 2025 Guidance - The company updated its fiscal year 2025 financial guidance, projecting total revenue of $4,076 - $4,096 million with organic growth of 4% to 4.5% [10][13]. - Non-GAAP diluted EPS guidance for fiscal 2025 is projected to be between $4.08 and $4.12 [13].

Core Insights - The Cooper Companies (COO) is currently more attractive to value investors compared to Merit Medical (MMSI) based on various financial metrics and rankings [1][3][7] Valuation Metrics - COO has a forward P/E ratio of 18.10, while MMSI has a forward P/E of 24.27, indicating that COO is potentially undervalued [5] - The PEG ratio for COO is 1.79, compared to MMSI's PEG ratio of 2.39, suggesting that COO has a better balance between price and expected earnings growth [5] - COO's P/B ratio is 1.77, significantly lower than MMSI's P/B of 3.51, further supporting the argument that COO is more attractively valued [6] Rankings and Grades - COO holds a Zacks Rank of 2 (Buy), while MMSI has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for COO [3] - The Value grade for COO is B, whereas MMSI has a Value grade of C, reflecting the superior valuation metrics of COO [6]

Group 1 - The Cooper Companies (COO) closed at $73.48, with a 0.8% gain over the past four weeks, and analysts set a mean price target of $92.93, indicating a 26.5% upside potential [1] - The mean estimate consists of 15 short-term price targets with a standard deviation of $7.52, where the lowest estimate is $76.00 (3.4% increase) and the highest is $105.00 (42.9% increase) [2] - Analysts show strong agreement on COO's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for COO has increased by 0.1% over the past month, with one estimate going higher and no negative revisions [12] - COO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of potential gains, it does provide a directional guide for price movement [14]

Core Viewpoint - The Cooper Companies, Inc. is expected to report strong third-quarter fiscal 2025 results, with anticipated revenue growth of 5.4% year-over-year and earnings per share (EPS) growth of 8.2% [2][10]. Group 1: Financial Performance - The Zacks Consensus Estimate for revenues is $982 million, reflecting a 5.4% increase from the previous year [2]. - The consensus estimate for earnings is 92 cents per share, indicating an 8.2% improvement from the prior-year period [2]. - The company has consistently beaten earnings estimates, with an average surprise of 3.18% over the last four quarters [1]. Group 2: Segment Performance - Cooper Companies operates under two main segments: CooperVision (CVI) and CooperSurgical (CSI), both of which have shown strength recently [3]. - The CVI segment is expected to benefit from rising demand for contact lenses, with projected sales growth of 6-7% in fiscal 2025 [8]. - The CSI segment may face challenges due to weak fertility demand, but growth in minimally invasive surgical devices is expected to partially offset this weakness [11][12]. Group 3: Product Demand and Innovations - The CVI segment has seen solid growth across all geographies, particularly in The Americas, and is expected to continue this trend [5]. - Strong demand for premium brands like MyDay is anticipated to persist, supported by new market availability and expanded product offerings [6]. - The company is also launching new products, such as MyDay Energy in Canada and upgraded Clarity One Day Sphere in Japan, which are expected to contribute to revenue growth [4]. Group 4: Market Trends and Challenges - The overall market for contact lenses is projected to grow by 4-6% in 2025, benefiting Cooper Companies due to its leadership in several categories [5]. - The fertility segment is experiencing a decline, particularly in the Asia-Pacific region, which may impact overall sales [12]. - Despite challenges in the fertility market, the company anticipates continued interest in its PARAGARD product, although sales may decline in the upcoming quarter [13].

Core Insights - Analysts project The Cooper Companies (COO) will report quarterly earnings of $1.06 per share, a 10.4% increase year over year, with revenues expected to reach $1.07 billion, reflecting a 6.2% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Estimates - Revenue by Category - CVI is forecasted to reach $723.97 million, indicating a year-over-year change of +7.2% [4] - Revenue by Category - CSI is expected to be $343.37 million, suggesting a change of +4.9% year over year [4] - Revenue by Category - CSI - Office and surgical is projected at $209.17 million, reflecting a +5.7% change from the prior-year quarter [4] - Revenue by Category - CSI - Fertility is estimated at $134.62 million, indicating a +4.1% change from the year-ago quarter [5] - Revenue by Category - CVI - Sphere, other is predicted to be $371.00 million, showing a +6.2% change from the year-ago quarter [5] - Revenue by Category - CVI - Toric and multifocal is expected to reach $352.82 million, indicating an +8.1% change from the prior-year quarter [6] Geographic Revenue Estimates - Revenue by Geography - Americas is projected at $311.49 million, reflecting a +11.3% change from the year-ago quarter [6] - Revenue by Geography - Asia Pacific is expected to be $143.68 million, suggesting a +3.1% year-over-year change [6] - Revenue by Geography - EMEA is forecasted to reach $267.71 million, indicating a +4.4% year-over-year change [7] Stock Performance - Shares of The Cooper Companies have shown a return of -1% over the past month, compared to the Zacks S&P 500 composite's +1.1% change [7] - The company holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [7]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for The Cooper Companies, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The Cooper Companies is expected to report quarterly earnings of $1.06 per share, reflecting a +10.4% year-over-year change, with revenues projected at $1.07 billion, up 6.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.58% for The Cooper Companies, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - The Cooper Companies has beaten consensus EPS estimates in three out of the last four quarters, with a recent surprise of +3.23% [13][14]. Additional Considerations - While an earnings beat may influence stock movement, other factors can also play a significant role in stock performance post-earnings release [15][17].

Core Insights - The Cooper Companies, Inc. (COO) is focusing on strategic investments in innovation and has a diversified product base that supports long-term growth, although it faces near-term macro and inventory challenges, particularly in fertility and global consumer spending [1] Financial Performance - COO's shares have declined by 20% this year, contrasting with a 2.3% decline in the industry and a 9.6% increase in the S&P 500 Index [2] - The company has a market capitalization of $14.65 billion and is projected to see a 10.1% improvement in its bottom line over the next five years, with earnings beating estimates in three of the last four quarters [2][3] Operational Highlights - COO achieved solid organic top-line growth with adjusted earnings per share (EPS) increasing by 14% year over year to 96 cents, and operating margin expanded to 24.9% due to efficiency gains and disciplined cost management [4][8] - The MyDay daily silicone hydrogel lenses and MySight myopia management products have shown significant growth, with increases of 10% and 35% year over year, respectively [5][8] - The surgical portfolio, particularly CooperSurgical, reported an 8% revenue growth, with office-based surgical devices and PARAGARD IUDs growing by 13% and 18%, respectively [6][9] Challenges - Fertility revenue growth has slowed to 3%, attributed to declining cycles in Asia and deferred spending by clinics, leading management to revise growth expectations for the fertility segment to low-single-digit growth for fiscal 2025 [10] - The company is facing inventory and channel destocking pressures, which are impacting revenue visibility despite strong underlying demand [11] - COO anticipates a $4 million tariff impact on fiscal 2025 cost of goods sold (COGS) and a 3% EPS headwind in fiscal 2026 due to potential tariff and foreign exchange risks [12] Revenue Estimates - The Zacks Consensus Estimate for fiscal 2025 revenues is $4.12 billion, indicating a growth of 5.7% from the previous year, with adjusted EPS expected to improve by 10% to $4.06 [13]

Company Overview - CooperCompanies is a leading global medical device company with a focus on enhancing people's experiences through its two business units: CooperVision and CooperSurgical [2] - CooperVision is a prominent player in the contact lens industry, while CooperSurgical specializes in fertility and women's healthcare [2] - The company is headquartered in San Ramon, California, employs over 16,000 people, and sells products in more than 130 countries, positively impacting over 50 million lives annually [2] Upcoming Events - CooperCompanies will participate in the Wells Fargo Healthcare Conference on September 3, 2025, with President and CEO Al White representing the company [1] - The session is scheduled for 3:00 PM ET, and a webcast will be available for investors and interested parties [1]

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Industry Overview - The Zacks Medical - Dental Supplies industry is experiencing weakness due to rising U.S. tariffs on trading partners, particularly China, which are expected to impact sales through 2025 [1] - Demand for elective procedures in the U.S. is declining, affecting sales across various product lines, including CAD/CAM and imaging products [2] - The global dental industry is projected to reach $610.4 billion with a CAGR of 4.5% from 2023 to 2032, indicating long-term growth potential despite current challenges [2] Major Trends - The aging population in the U.S. is a significant driver for the dental equipment market, with 55.8 million people aged 65 and above reported in 2020 [5] - Technological innovations such as CAD/CAM systems and AI diagnostics are enhancing treatment efficacy and expanding product use [6] - There is a growing emphasis on preventive care, leading to increased consumption of preventive dental products [6] - Trends towards minimally invasive and cosmetic dentistry are expanding market segments for specialized dental consumables [7] - Emerging markets, particularly in Asia-Pacific, are experiencing faster growth rates due to rising healthcare expenditure and improved access to care [8] Economic Impact - U.S. tariffs have significantly increased costs on essential imported dental items, with tariffs ranging from 10% to over 50%, leading to higher operational costs for manufacturers and distributors [10] - The industry is gradually shifting supply chains towards domestic production to mitigate tariff exposure, while dental associations are advocating for tariff exemptions [10] Industry Performance - The Zacks Medical Dental Supplies industry has underperformed compared to the broader sector and the S&P 500, with a collective decline of 0.4% over the past year [13] - The industry is currently trading at a forward P/E of 16.05X, lower than the S&P 500's 22.7X and the sector's 18.4X [16] Company Insights - West Pharmaceutical is expected to sustain growth momentum through 2025, with projected revenues between $3.04 billion and $3.06 billion, reflecting an organic growth of 3-3.75% [22] - McKesson is experiencing strong operational momentum, with a projected revenue gain of 13.3% for fiscal 2025 [31] - Cardinal Health anticipates adjusted EPS in the range of $8.05-$8.15 for fiscal 2025, despite facing pricing pressures and inflationary impacts [37] - Cooper Companies expects revenue growth of approximately 5.7% for 2025, supported by strong demand in both CooperVision and CooperSurgical segments [43]