Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Cash Flow [3] - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score evaluates stocks based on price trends and earnings estimate changes to identify optimal buying opportunities [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall potential [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10][11] Group 5 - The Cooper Companies Inc operates globally in the specialty medical device sector, with two segments: CooperVision and CooperSurgical [12] - Currently rated 3 (Hold) with a VGM Score of A, Cooper is projected to achieve year-over-year earnings growth of 9.8% for the current fiscal year [12][13] - Recent upward revisions by analysts have increased the Zacks Consensus Estimate for Cooper to $4.05 per share, with an average earnings surprise of 3.2% [13]

Core Insights - The Cooper Companies' international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $1 billion, reflecting a year-over-year increase of 6.3% [4] International Revenue Breakdown - EMEA contributed 24.80% of total revenue, amounting to $248.6 million, exceeding Wall Street's expectations by +1.97% [5] - Asia Pacific generated $138.6 million, representing 13.83% of total revenue, also surpassing projections by +1.47% [6] Revenue Projections - Analysts forecast total revenue of $1.07 billion for the current fiscal quarter, indicating a 6.7% increase from the previous year [7] - For the full year, total revenue is expected to reach $4.12 billion, a 5.7% increase year-over-year [8] Market Trends and Challenges - The reliance on global markets presents both opportunities and challenges for The Cooper Companies, necessitating close examination of international revenue trends [9][10]

Core Insights - Cooper Companies (COO) reported strong fiscal Q2 2025 results, with revenue of $1 billion (up 6.3% YoY) and adjusted EPS of 96 cents (up 14% YoY), exceeding analyst expectations [1] - The company maintains confidence in its core product momentum despite macroeconomic challenges, revising full-year revenue guidance to $4,107-$4,146 million and adjusted EPS to $4.05–$4.11 [1] Company Performance - COO's year-to-date performance shows a 25.7% decline in share price, contrasting with gains of 7.3% for Johnson & Johnson (JNJ) and 1.3% for Alcon (ALC) [4] - The company underperformed against the industry decline of 1.4% and the S&P 500 Index's increase of 0.1% [4] Short-Term Growth Drivers - Improved availability of MyDay lenses and strong demand are key short-term catalysts, with management noting increased fitting activity following capacity expansions [7] - The launch of MyDay Energys in Canada and upgraded Clarity One Day Sphere in Japan has been positively received, setting the stage for revenue growth in Q4 [7][8] Long-Term Growth Catalysts - CooperVision leads in specialty lenses, with Myopia management segment growing 35% in Q2, projected to exceed $100 million in sales for fiscal 2025 [13] - Operational leverage is strong, with gross margins at 68% (up 100 bps YoY) and operating margins at 25% (up 100 bps), supported by lower operating expenses [14] Challenges and Market Risks - The fertility business grew only 3% (2% organic) in Q2, attributed to declining fertility cycles in Asia Pacific and capital purchase deferrals globally [17] - Global inventory corrections are impacting revenue, with a revised contact lens market growth assumption of 4-6% [18] - Tariff-related cost pressures of $4 million are expected in fiscal 2025, with currency headwinds projected to impact revenue by 0.5% and EPS by 1% [19] Conclusion - Cooper Companies enters the second half of fiscal 2025 with strong operational execution and growing market share, although macro and regional challenges may limit near-term growth [24]

Financial Performance - For the three months ended April 30, 2025, CooperVision reported net sales of $669.6 million, a 5% increase compared to $635.9 million in the same period of 2024[92]. - For the six months ended April 30, 2025, total net sales reached $1,315.7 million, reflecting a 5% growth from $1,257.4 million in the same period of 2024[96]. - For the three months ended April 30, 2025, total net sales increased by 8% to $332.7 million compared to $306.7 million in the same period of 2024[103]. - Consolidated gross margin improved to 68% in the three months ended April 30, 2025, up from 67% in the same period of 2024, due to efficiency gains and a favorable product mix[110]. - Operating income for the company increased by 14% to $184.8 million in the three months ended April 30, 2025, compared to $161.7 million in the same period of 2024[121]. Sales by Product Type - Toric and multifocal lenses generated $328.4 million in sales, up 6% from $310.3 million in the prior year, while spherical and other lenses increased by 5% to $341.2 million from $325.6 million[92]. - CooperSurgical's net sales are supported by a diversified portfolio in the fertility and women's health care market, with significant contributions from products like MiSight and Biofinity[99]. - Office and surgical net sales rose by 13% to $205.8 million, driven by increased sales of Paragard contraceptive intrauterine devices and the acquisition of obp Surgical[107]. - Fertility net sales increased by 3% to $126.9 million, attributed to higher revenue from gamete services[107]. Regional Sales Performance - In the Americas region, net sales increased by 7% to $282.4 million for the three months and $553.3 million for the six months, compared to $264.4 million and $517.0 million, respectively, in 2024[98]. - EMEA region sales grew by 5% to $248.6 million for the three months and 4% to $495.1 million for the six months, compared to $237.0 million and $475.2 million in 2024[98]. - Asia Pacific region sales saw a 3% increase to $138.6 million for the three months and a 1% increase to $267.3 million for the six months, compared to $134.5 million and $265.2 million in 2024[98]. Expenses and Costs - Selling, General and Administrative (SGA) expenses for CooperVision increased by 5% to $236.9 million, while CooperSurgical's SGA expenses rose by 2% to $136.8 million[113]. - Research and Development (R&D) expenses increased by 17% to $45.5 million in the three months ended April 30, 2025, primarily due to myopia management programs[116]. Cash Flow and Capital Management - Operating cash flow for the first six months of fiscal 2025 increased to $286.8 million, up from $233.7 million in the same period of fiscal 2024, reflecting improved net income and changes in operating capital[133][134]. - Cash used in investing activities decreased to $(176.0) million in the first half of fiscal 2025, compared to $(398.9) million in the first half of fiscal 2024, primarily due to a $200 million payment for the Cook Medical acquisition in 2024[135]. - Cash used in financing activities was $(105.2) million in the first six months of fiscal 2025, mainly for repayments on revolving credit and the first installment related to the Cook Medical acquisition[136]. - Working capital increased to $1,113.2 million as of April 30, 2025, from $928.7 million as of October 31, 2024, mainly due to higher inventories and accounts receivable[132]. Debt and Compliance - As of April 30, 2025, the company had outstanding debt of $2.6 billion and may use interest rate swaps to manage interest rate risk[148][149]. - As of April 30, 2025, the company had total credit facilities of $3.8 billion, with $2.5 billion outstanding and $1.27 billion available[137]. - The company remains in compliance with all debt covenants and anticipates sufficient cash flow to meet its needs for at least the next 12 months[138]. Tax and Interest - Interest expense decreased by 16% to $24.2 million in the three months ended April 30, 2025, due to lower interest rates and average debt balances[126]. - The effective tax rate for the three months ended April 30, 2025, was 39.3%, up from 31.6% in the same period of 2024, primarily due to changes in valuation allowance[129]. Market Outlook - CooperVision is focused on expanding its market presence through new product introductions and acquisitions, particularly in the silicone hydrogel contact lens segment[81]. - The company anticipates continued growth in the contact lens market driven by technological advancements and improved product offerings[80]. Currency Impact - A hypothetical 10% change in foreign currency exchange rates could result in a $31.8 million impact on operating income for the fiscal quarter ended April 30, 2025[147]. - CooperVision's sales growth was partially offset by unfavorable foreign exchange rate fluctuations of approximately $7.7 million for the three months and $22.4 million for the six months ended April 30, 2025[96]. Share Repurchase - As of April 30, 2025, the company had $215.8 million remaining for share repurchase under the 2012 program, having repurchased 0.5 million shares for $40.6 million at an average price of $75.60 per share during the first half of fiscal 2025[141].

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider Dentsply International (XRAY) and The Cooper Companies (COO) for potential value opportunities, with XRAY currently showing stronger metrics and analyst outlook [1][3]. Valuation Metrics - Dentsply International (XRAY) has a forward P/E ratio of 8.64, while The Cooper Companies (COO) has a forward P/E of 20.09, indicating XRAY may be undervalued [5]. - The PEG ratio for XRAY is 1.17, compared to COO's PEG ratio of 2.02, suggesting XRAY has a more favorable growth outlook relative to its valuation [5]. - XRAY's P/B ratio is 1.62, while COO's P/B ratio is 1.96, further supporting XRAY's stronger valuation metrics [6]. Analyst Outlook - XRAY holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to COO, which has a Zacks Rank of 3 (Hold) [3][7]. - The improving analyst outlook for XRAY suggests it is a more attractive option for value investors at this time [3][7].

CooperCompanies Fiscal 2025 financial guidance | | | FY25 Guidance | | Organic Growth vs. FY24 | | | --- | --- | --- | --- | --- | --- | | e | Total | $4,107 - | $4,146 | 5% - 6% | | | u n e v e | CooperVision | $2,759 - | $2,786 | 6% - | 7% | | R | CooperSurgical | $1,347 - | $1,359 | 3.5% - | 4.5% | | S P E | Non-GAAP | $4.05 - | $4.11 | | | Notes: Sales $ in millions 1. Guidance updated 5/29/25. 2. Revenue growth is organic and non-GAAP EPS growth excludes FX. Organic growth is defined as constant curren ...

Core Viewpoint - The Cooper Companies, Inc. reported strong second-quarter fiscal 2025 results, with adjusted earnings per share (EPS) of 96 cents, reflecting an 11.5% year-over-year increase, surpassing estimates. Revenue growth was driven by operational improvements and strong performance in its product segments [1][2][16]. Revenue Performance - Total revenues reached $1 billion, marking a 6.3% year-over-year increase on a reported basis, and a 7% increase at constant exchange rates (CER) and organically [1][2]. - The CooperVision (CVI) segment generated revenues of $669.6 million, up 5% year-over-year on a reported basis and 7% at CER and organically [4]. - The CooperSurgical (CSI) segment reported revenues of $332.7 million, an 8% increase on a reported basis, 9% at CER, and 7% organically [8]. Segment Analysis - In the CVI segment, Toric and multifocal revenues totaled $328.4 million, up 6% year-over-year on a reported basis, and up 7% organically and at CER [5]. - Sphere and other revenues reached $341.2 million, reflecting a 5% year-over-year increase on a reported basis and a 6% increase at CER and organically [6]. - Geographically, revenues from the Americas totaled $282.4 million, up 7% year-over-year on a reported basis, while EMEA revenues were $248.6 million, up 5% year-over-year [6][7]. Margin and Cost Trends - Adjusted gross profit increased by 2.4% to $681.9 million, with an adjusted gross margin expanding by 100 basis points to 68% [10]. - Selling, general, and administrative expenses rose by 4.9% to $399 million, while research and development expenses increased by 17% to $45.5 million [10]. Financial Position - The company ended the second quarter with cash and cash equivalents of $116.2 million, up from $100.9 million at the end of the previous quarter. Total debt increased to $2.77 billion from $2.59 billion [12]. Guidance and Outlook - The Cooper Companies updated its fiscal 2025 revenue guidance to a range of $4,107-$4,146 million, indicating an organic improvement of 5-6% from the prior year [13]. - The CVI segment's revenue is expected to be between $2,759-$2,786 million, suggesting a 6-7% organic improvement [13]. - The CSI segment's revenue is projected to be in the range of $1,347-$1,359 million, indicating a 3.5-4.5% organic improvement [14]. - Adjusted EPS for the fiscal year is anticipated to be in the range of $4.05-$4.11 [15]. Product Performance - CooperVision's growth was driven by strong demand for MyDay and Clarity daily silicone hydrogel lenses, as well as Biofinity and Avaira in the frequent replacement category [16]. - MySight, a myopia management solution, grew by 35%, supported by a new pricing strategy and a major private label deal [17]. - CooperSurgical's performance was bolstered by the office and surgical segment, with significant sales growth in specific products [18]. Market Context - Despite beating estimates, the company's shares fell by 4.9% in after-hours trading, reflecting a 13% decline year-to-date compared to a 0.8% decline in the industry [2]. - Tariffs are expected to impact earnings, with a potential 3% drag anticipated in fiscal 2026 if unmitigated [19].

Group 1: Elastic N.V. Performance - Elastic reported adjusted earnings of 47 cents per share, exceeding market estimates of 37 cents per share [1] - The company's sales reached $388.43 million, surpassing expectations of $380.36 million [1] - For the first quarter, Elastic anticipates adjusted EPS of 41 to 43 cents on sales between $396.00 million and $398.00 million [2] Group 2: Market Reactions - Elastic shares fell 9.7% to $83.23 in pre-market trading following the earnings report [2] - The Gap, Inc. saw a decline of 13.7% to $24.10 after reporting first-quarter results and warning of potential tariff costs of $250 million to $300 million [5] - The Cooper Companies, Inc. shares dropped 10% to $72.00 after second-quarter results [5] - Regeneron Pharmaceuticals, Inc. shares fell 8.8% to $552.00 despite meeting primary endpoints in one study [5] - Newsmax, Inc. declined 8.2% to $20.49 after filing for resale of up to 121 million shares [5] - IonQ, Inc. shares decreased by 7.4% to $40.01 [5] - American Eagle Outfitters, Inc. fell 7.2% to $10.38 after reporting disappointing first-quarter results [5] - Venu Holding Corporation dipped 6.1% to $12.10 after a previous gain [5] - NetApp, Inc. shares declined 5.2% to $94.00 following soft first-quarter guidance [5]

Core Insights - The Cooper Companies reported $1 billion in revenue for the quarter ended April 2025, marking a year-over-year increase of 6.3% and an EPS of $0.96 compared to $0.85 a year ago, exceeding the Zacks Consensus Estimate of $995.61 million by 0.67% [1] - The company delivered an EPS surprise of 3.23%, with the consensus EPS estimate being $0.93 [1] Revenue Performance - Revenue by Geography: - Americas: $282.40 million, a year-over-year change of +6.8%, below the average estimate of $288.77 million [4] - Asia Pacific: $138.60 million, a year-over-year change of +3.1%, slightly above the average estimate of $136.60 million [4] - EMEA: $248.60 million, a year-over-year change of +4.9%, exceeding the average estimate of $243.81 million [4] - Revenue by Category: - CVI: $669.60 million, a +5.3% change year-over-year, slightly above the average estimate of $669.02 million [4] - CSI: $332.70 million, an +8.5% change year-over-year, above the average estimate of $329.54 million [4] - CSI- Office and surgical: $205.80 million, a +12.5% change year-over-year, exceeding the average estimate of $195.05 million [4] - CSI- Fertility: $126.90 million, a +2.5% change year-over-year, below the average estimate of $135.30 million [4] - CVI- Sphere, other: $341.20 million, a +4.8% change year-over-year, above the average estimate of $337.28 million [4] - CVI- Toric and multifocal: $328.40 million, a +5.8% change year-over-year, slightly below the average estimate of $331.93 million [4] Stock Performance - Shares of The Cooper Companies have returned -1.9% over the past month, while the Zacks S&P 500 composite has changed by +6.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - The Cooper Companies reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing an increase from $0.85 per share a year ago, indicating a positive earnings surprise of 3.23% [1][2] Financial Performance - The Cooper Companies achieved revenues of $1 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.67%, and up from $942.6 million in the same quarter last year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - The Cooper Companies' shares have declined approximately 12.9% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $1.07 billion, and for the current fiscal year, it is $3.98 on revenues of $4.12 billion [7] Industry Context - The Medical - Dental Supplies industry, to which The Cooper Companies belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8]