Core Viewpoint - Cooper Companies is initiating a formal strategic review to identify opportunities for enhancing long-term shareholder value, resulting in an 11.7% increase in shares during extended trading [1] Group 1 - The strategic review aims to enhance long-term shareholder value [1] - The announcement led to a significant increase in the company's share price by 11.7% in after-hours trading [1]

Core Points - CooperCompanies has appointed Colleen Jay as the new Chair of the Board, effective January 2, 2026, succeeding Robert Weiss, who will remain on the Board for reelection [1][2] - The company is undergoing a formal strategic review to identify opportunities for enhancing long-term shareholder value [1][4] Leadership Changes - Colleen Jay has been on the Board since 2016 and has a strong background in global operational leadership, having retired from Procter & Gamble in 2017 after 32 years [2] - Robert Weiss has been a significant figure in CooperCompanies' success for nearly five decades, serving in various leadership roles including CEO from 2007 to 2018 [3] Strategic Review - The strategic review aims to improve performance in core markets, expand market share, enhance operational efficiency, and generate strong returns through disciplined capital deployment [4] - The company plans to focus on share repurchases under a $2 billion share repurchase program during this review period [4] Company Overview - CooperCompanies operates in the medical device sector with two main business units: CooperVision, a leader in the contact lens industry, and CooperSurgical, focused on fertility and women's healthcare [5] - The company has a workforce of over 15,000 and sells products in more than 130 countries, positively impacting over 50 million lives annually [5]

Core Insights - CooperCompanies reported strong financial results for fiscal year 2025, exceeding consensus expectations for revenue, earnings, and free cash flow, with a focus on long-term shareholder value through growth and profitability initiatives [2][5]. Financial Performance - Fourth quarter revenue reached $1,065.2 million, a 5% increase year-over-year, with organic growth of 3% [5][6]. - Fiscal year 2025 revenue totaled $4.1 billion, also up 5% from the previous year, with organic growth of 4% [5][13]. - GAAP diluted earnings per share (EPS) for Q4 was $0.43, down 27%, while fiscal year GAAP diluted EPS was $1.87, down 4% [5][27]. - Non-GAAP diluted EPS for Q4 was $1.15, up 11%, and for the fiscal year, it was $4.13, up 12% [5][27]. Segment Performance - CooperVision (CVI) revenue for Q4 was $709.6 million, a 5% increase year-over-year, with organic growth of 3% [6][59]. - CooperSurgical (CSI) revenue for Q4 was $355.6 million, up 4% year-over-year, with organic growth also at 4% [12][59]. Margins and Costs - Gross margin for Q4 was 61%, down from 67% in the previous year, primarily due to reorganization costs [6][13]. - Non-GAAP gross margin was 66%, down 70 basis points from last year [6][13]. - Operating margin for Q4 was 13%, compared to 19% in the previous year, while non-GAAP operating margin improved to 27% [6][13]. Cash Flow and Share Repurchase - Cash provided by operations was $247.8 million, leading to free cash flow of $149.8 million after capital expenditures of $98.0 million [6][13]. - The company repurchased $197.3 million of common stock in Q4 and $290.1 million for the fiscal year, with a total share repurchase authorization of $2 billion [13][14]. Future Guidance - For fiscal year 2026, the company expects total revenue between $4.299 billion and $4.338 billion, with organic growth of 4.5% to 5.5% [20]. - Non-GAAP diluted EPS guidance for fiscal 2026 is projected to be between $4.45 and $4.60 [20].

The Cooper Companies, Inc. (NASDAQ:COO) will release earnings results for the fourth quarter after the closing bell on Thursday, Dec. 4.Analysts expect the Bolingbrook, Illinois-based company to report quarterly earnings at $1.11 per share, up from $1.04 per share in the year-ago period. The consensus estimate for Cooper Companies' quarterly revenue is $1.06 billion, compared to $1.02 billion a year earlier, according to data from Benzinga Pro.On Sept. 17, Cooper Companies' board approved a $1 billion incre ...

Core Insights - The Cooper Companies, Inc. is set to release its fourth-quarter earnings results on December 4, with expected earnings of $1.11 per share, an increase from $1.04 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.06 billion, up from $1.02 billion a year earlier [1] Share Repurchase Program - The board of Cooper Companies approved a $1 billion increase in its share repurchase program on September 17 [2] Stock Performance - Cooper Companies shares rose 0.2% to close at $75.98 on Wednesday [3] Analyst Ratings - Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $72 [6] - Barclays initiated coverage with an Overweight rating and a price target of $85 [6] - JP Morgan maintained a Neutral rating and reduced the price target from $76 to $66 [6] - Baird maintained an Outperform rating and cut the price target from $97 to $85 [6] - Stifel maintained a Buy rating and lowered the price target from $90 to $85 [6]

Core Insights - The Cooper Companies, Inc. (COO) is set to release its fourth-quarter fiscal 2025 results on December 14, with expectations of revenue at $1.06 billion and earnings at $1.11 per share, reflecting a 4.1% revenue increase and a 6.7% earnings improvement year-over-year [1][2]. Group 1: Financial Estimates - The Zacks Consensus Estimate for revenues is $1.06 billion, indicating a 4.1% increase from the previous year [2]. - The consensus estimate for earnings is $1.11 per share, implying a 6.7% improvement from the prior-year period [2]. - Cooper Companies expects total revenues to be in the range of $1.049-$1.069 billion, suggesting 2-4% organic growth during the fourth quarter [2]. Group 2: Segment Performance - Cooper Companies reports revenues under two main segments: CooperVision (CVI) and CooperSurgical (CSI), both of which have shown strength in recent quarters [3]. - CVI is expected to benefit from rising demand for contact lenses, particularly MyDAY lenses, with projected sales between $700-$713 million, reflecting 2-4% organic growth [5][9]. - CSI's revenue growth is anticipated to be limited by weaker fertility and PARAGARD demand, with expected sales in the range of $350-$356 million, indicating 2-4% organic growth [11][13]. Group 3: Market Trends and Drivers - Strong consumption trends and a shift towards silicone hydrogel lenses are likely to have driven CVI sales, alongside continued demand for toric and multifocal products [4]. - The demand for MyDAY lenses has been robust, with the company resolving manufacturing constraints, allowing for full sales capacity [6]. - The Biofinity brand and MiSight lenses are also expected to contribute to strong growth, supported by increased fitting activity [8]. Group 4: Challenges and Weaknesses - Despite the overall positive trends, the demand for MyDAY may negatively impact the adoption of the lower-priced Clariti lens brand [9]. - The fertility business within CSI is showing signs of weakness, with clinics managing cash conservatively and delaying capital purchases, which may further pressure revenue [12].

Core Insights - CooperVision Asia Pacific, in partnership with CEVA Logistics, has launched a new Regional Service Centre in Singapore to enhance supply chain and logistics capabilities in the Asia Pacific region [1][3]. Group 1: Infrastructure and Logistics - The new centre is strategically located in CEVA's healthcare hub within Singapore's Airport Logistics Park, a free trade zone near Changi Airport, marking the first phase of a larger infrastructure investment plan aimed at strengthening regional leadership and operational excellence [3]. - The centre will centralize inventory, reducing reliance on local stockholding and enabling faster fulfillment of non-stocked items, thereby enhancing product access and driving cost efficiencies [5][6]. Group 2: Product Availability and Market Impact - The Singapore-based centre will provide an additional 7,000 SKUs regionally from CooperVision's portfolio, which includes toric and multifocal contact lenses, allowing eye care professionals to better meet the diverse needs of patients [4]. - With 99.9% of astigmatic patients and 99.7% of presbyopes successfully fitted with CooperVision contact lenses, the enhanced availability will empower practitioners to cater to a broader patient base [4]. Group 3: Operational Efficiency and Innovation - CEVA Logistics has implemented a healthcare-focused warehouse management system and introduced in-house laser marking for repackaging, which has been licensed by the National Environment Agency, to improve operational efficiency at the new service centre [5][6]. - The collaboration between CooperVision and CEVA Logistics emphasizes a commitment to innovation and service excellence, with a focus on developing smarter logistics solutions to enhance customer experience [6].

Core Viewpoint - Browning West, an investment management firm, criticizes Cooper's lack of strategic focus, misaligned incentives, and inadequate board oversight, which have led to significant underperformance compared to market indices. The firm advocates for a restructuring of Cooper as a pure-play vision care company, suggesting that this could potentially double the stock price [1][2]. Group 1: Lack of Strategic Focus - Cooper operates two leading businesses: CooperVision, the largest contact lens company, and CooperSurgical, the largest fertility medical devices business, both of which have strong growth potential due to increasing myopia and infertility rates globally [2]. - Despite solid market positions, Cooper has underperformed the S&P 500 and related healthcare indices over the past 1, 3, and 5 years, with total revenue increasing by 47% but non-GAAP EPS growing only 20% from 2019 to 2024 [2][22]. - The current corporate structure dilutes management focus, leading to poor execution and failure to meet financial guidance, as evidenced by a significant drop in organic growth rates and a 13% share price decline following disappointing earnings [5][8]. Group 2: Misaligned Incentive Structure - Cooper's incentive structure promotes a "growth at all costs" mentality without considering free cash flow (FCF) or return on invested capital (ROIC), resulting in a cumulative ROIC of below 5% on approximately $4 billion invested in CooperSurgical over the past decade [6][27]. - Management's inability to define maintenance versus growth capital expenditures has raised concerns among shareholders, especially as FCF remains below 2019 levels despite a 54% revenue increase [7][28]. - Shareholders have experienced a 35% decline in Cooper's share price since September 2024, while management has continued to receive substantial compensation [7][28]. Group 3: Inadequate Board Oversight - The Board has rewarded management despite value-destructive acquisitions and capital misallocation, leading to a 100 percentage point underperformance compared to the S&P 500 over the past five years [8][15]. - The Board lacks essential expertise in vision care and medical devices, hindering effective oversight and strategic evaluation [8][10]. - The current Chairman, Robert Weiss, has been on the Board for nearly three decades and has sold over $100 million in stock since 2019, raising questions about his independence and the Board's ability to make sound strategic decisions [9][10]. Group 4: Recommendations for Change - Browning West urges the appointment of new directors with relevant sector expertise to enhance governance and align incentives with long-term shareholder value creation [11][12]. - A refreshed Board could drive initiatives to unlock Cooper's potential, potentially doubling EPS and improving the company's valuation multiple [12][14]. - The firm emphasizes the need for a thorough reassessment of operating plans and capital allocation strategies for both CooperVision and CooperSurgical [14].

Company Overview - The Cooper Companies, Inc. (COO) has a market cap of $14.4 billion and operates globally in the medical device sector, focusing on contact lenses through CooperVision and women's and family health care products via CooperSurgical [1] Stock Performance - COO shares have underperformed the broader market over the past 52 weeks, declining 27.4% while the S&P 500 Index gained 12.3% [2] - Year-to-date, COO shares have decreased by 21.5%, compared to a 12.5% return for the S&P 500 [2] Financial Performance - In Q3 2025, COO reported adjusted EPS of $1.10, which was stronger than expected, but shares fell 12.9% the following day due to missed revenue estimates of $1.06 billion [4] - The company revised its full-year revenue guidance down to $4.07 billion - $4.10 billion, citing a significant drop in contact lens demand in Asia, particularly China, and a slowdown in the U.S. market [4] Analyst Expectations - For the fiscal year ending in October 2025, analysts project a 10.8% year-over-year growth in adjusted EPS to $4.09 [5] - The consensus rating among 17 analysts is a "Moderate Buy," with nine "Strong Buy" ratings, one "Moderate Buy," six "Holds," and one "Strong Sell" [5] Analyst Ratings and Price Targets - The current analyst configuration is slightly less bullish than three months ago, with 10 "Strong Buy" ratings previously [6] - Wells Fargo analyst downgraded COO to "Hold" with a price target of $72, while the mean price target of $81.88 suggests a 13.4% premium to the current price [6] - The highest price target of $96 indicates a potential upside of nearly 33% [6]

Company Overview - The Cooper Companies operates through two segments: CooperVision, focused on contact lenses, and CooperSurgical, which addresses fertility and women's health care [1][4] - CooperVision accounts for 66% of revenue and is a global leader in contact lens wearers, holding a 26% market share, competing with Johnson & Johnson (37%), Alcon (26%), and Bausch + Lomb (10%) [4] - CooperSurgical contributes 33% of revenue, with 60% from office and surgical services and 40% from fertility services [6] Market Dynamics - The global soft contact lens market is valued at approximately $11 billion, growing at an annual rate of 4% to 6%, driven by a shift to silicone hydrogel 1-day lenses and increasing global contact lens users [5] - The fertility treatment market is a $2 billion global market, also expected to grow at a 4% to 6% pace annually [6] Strategic Challenges - Cooper has been reallocating cash from its profitable contact lens business to CooperSurgical, which has led to declining returns on capital and lower margins in the surgical segment [8][10] - Management changes, particularly the appointment of CEO Albert White, have raised questions about the company's strategic focus, as he previously led CooperSurgical [9] Recent Developments - Jana Partners has taken a position in Cooper and is advocating for strategic alternatives, including a potential merger of its contact lens unit with Bausch + Lomb [3][12] - A merger would not create a market leader, as the combined market share would be 36%, just below Johnson & Johnson's 37% [13] - The complementary nature of the businesses suggests minimal regulatory hurdles for a potential merger [14] Financial Performance - Cooper's share price fell 12.85% following a significant reduction in full-year guidance due to lower-than-expected organic growth in both segments [11] - The company is currently trading at a 12-month forward P/E of 16.4x, a discount compared to its 10-year average of 23.1x [11] Strategic Recommendations - Jana Partners suggests that separating the two business units could yield $300 million to $500 million in synergies, which is substantial for a business generating $850 million in EBITDA [16] - If management resists separation, the focus may shift to leadership changes, potentially appointing a new CEO with expertise in the contact lens industry [17][18]