Financial Data and Key Metrics Changes - Consolidated revenues were $1,002 million, up 6% year over year or up 7% organically [7] - Non-GAAP earnings were $0.96, up 14% year over year [24] - Consolidated gross margin was 68%, up from 67.3% [21] - Operating expenses increased 6% but declined as a percentage of revenue to 43.1% [22] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $670 million, up 5% or up 7% organically [7] - CooperSurgical posted revenues of $333 million, up 8% or up 7% organically [14] - Daily silicone hydrogel lenses grew 10%, with Myopia management portfolio growing 19% [8][11] - Fertility revenues were $127 million, up 3% and up 2% organically, but lower than expected due to market softness [15] Market Data and Key Metrics Changes - The Americas grew 8%, EMEA grew 6%, and Asia Pac grew 5% for CooperVision [8] - The contact lens industry grew 4% in calendar Q1, leading to a reduction in growth expectations to 4% to 6% for the year [18][19] - Fertility market growth expectations were reduced to low single digits due to market softness, particularly in Asia Pac [19][41] Company Strategy and Development Direction - The company is focusing on operational improvements and product launches to drive growth [6] - There is a strong emphasis on increasing availability of MyDay and MiSight products in new markets [9][14] - The company is adjusting its revenue guidance to reflect solid Q2 performance and updated market assumptions [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more complex global operating environment but emphasized strong execution and market share gains [6][20] - There is optimism about long-term growth fundamentals in fertility despite current market softness [16][41] - Management expects organic growth in Q4 to be stronger than Q3, supported by product rollouts and improved fitting activity [25][52] Other Important Information - The company repurchased approximately 537,000 shares for roughly $40.6 million, leaving $215.8 million available under the repurchase plan [24] - Tariffs are expected to have a negative impact of roughly $4 million on the cost of goods this year [26] - Currency fluctuations are anticipated to have a 0.5% headwind to revenues and a 1% headwind to earnings [26] Q&A Session Summary Question: Contact lens end market performance - Management noted that channel inventory pressures are affecting growth rates, but fitting activity remains strong [30][31] Question: Lower market growth assumption for Vision Care - The reduction in guidance is attributed to general market softness rather than specific pricing or volume issues [34][36] Question: Fertility market softness in Asia - Management indicated that the decline in fertility cycles in Asia is partly due to cultural factors and economic pressures [41][42] Question: Changes in consumer behavior regarding contact lens purchases - Management confirmed that consumers are buying shorter supply durations, impacting revenue despite strong fitting activity [46][47] Question: Guidance for Q3 and Q4 - Management expects Q3 results to be below the lower end of guidance, with Q4 anticipated to be at or above the top end [52] Question: Inventory expectations for the rest of the year - Management anticipates continued pressure on inventory levels throughout the year, affecting overall market growth [55][56] Question: Margin expectations moving forward - Management expects continued improvement in margins due to operational efficiencies and prior investment returns [70]

Financial Data and Key Metrics Changes - Consolidated revenues were $1,002 million, up 6% year over year or up 7% organically [6][21] - Non-GAAP earnings were $0.96, up 14% year over year [6][23] - Consolidated gross margin improved to 68%, up from 67.3% [21] - Operating expenses increased by 6%, but declined as a percentage of revenue to 43.1% [21] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $670 million, up 5% or up 7% organically [6][21] - CooperSurgical posted revenues of $333 million, up 8% or up 7% organically [6][21] - Daily silicone hydrogel lenses grew 10%, with MyDay and Clarity leading the growth [7][9] - Myopia management portfolio grew 19%, with MiSight up 35% [7][11] Market Data and Key Metrics Changes - The Americas grew 8%, EMEA grew 6%, and Asia Pacific grew 5% [7] - Fertility revenues were $127 million, up 3% and up 2% organically, but lower than expected due to market softness in Asia Pacific [14][15] - Office and Surgical sales were $206 million, up 13% or up 10% organically [15][16] Company Strategy and Development Direction - The company is focusing on expanding its product availability in new markets and channels, particularly for MyDay and MiSight [8][9] - There is a strong emphasis on operational improvements and leveraging existing investments to drive growth [21][22] - The company is optimistic about long-term growth in fertility despite current market softness [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more complex global operating environment but emphasized strong execution and market share gains [5][6] - The company is adjusting its revenue guidance to reflect solid Q2 performance and updated market assumptions [17][24] - Management expects organic growth in Q4 to be stronger than Q3, driven by product rollouts and improved fitting activity [24] Other Important Information - The company repurchased approximately 537,000 shares for roughly $40.6 million, leaving $215.8 million available under its repurchase plan [23] - Tariffs are expected to have a negative impact of roughly $4 million on the cost of goods this year [25] - Currency fluctuations are anticipated to have a 0.5% headwind to revenues and a 1% headwind to earnings [25] Q&A Session Summary Question: Contact lens end market performance - Management noted that channel inventory pressures are affecting growth rates, but fitting activity remains strong [29][30] Question: Lower market growth assumption for Vision Care - The reduction in guidance is attributed to general market softness rather than specific pricing or volume issues [33][36] Question: Changes in market behavior and consumer purchasing - Management confirmed that consumers are buying shorter supply durations, impacting revenue despite strong fitting activity [45][46] Question: Fertility market softness in Asia - The decline in fertility cycles in Asia Pacific is partly attributed to cultural factors, but management remains optimistic about long-term growth [39][42] Question: Future pricing opportunities - Management believes there are opportunities for inflationary price increases, but overall pricing remains solid [100][101] Question: Impact of tariffs on guidance - Tariffs are expected to impact costs, with potential adjustments in manufacturing and pricing strategies to mitigate effects [77][104]

Revenue and Growth - Revenue increased 6% year-over-year to $1,002.3 million, with CooperVision revenue up 5% to $669.6 million and CooperSurgical revenue up 8% to $332.7 million[3] - CooperVision's revenue by geography: Americas at $282.4 million (up 7%), EMEA at $248.6 million (up 5%), and Asia Pacific at $138.6 million (up 3%)[6] - CooperSurgical's office and surgical revenue increased 13% to $205.8 million, while fertility revenue rose 3% to $126.9 million[9] - Net sales for Q2 2025 reached $1,002.3 million, a 6% increase year-over-year compared to $942.6 million in Q2 2024[39] - CooperVision reported net sales of $669.6 million in Q2 2025, reflecting a 7% organic growth rate[41] - CooperSurgical achieved net sales of $332.7 million in Q2 2025, with an organic growth rate of 7% after accounting for a 2% impact from acquisitions and divestitures[41] - Fiscal year 2025 total revenue guidance is set at $4,107 - $4,146 million, with organic growth of 5% to 6%[14] Earnings and Margins - Non-GAAP diluted EPS of $0.96, up $0.11 or 14% from last year's second quarter[3] - Gross margin improved to 68% from 67% in the previous year, driven by efficiency gains[4] - Operating margin increased to 18% compared to 17% in the prior year, with non-GAAP operating margin at 25%, up from 24%[4] - Operating income for Q2 2025 was $184.8 million, an increase from $161.7 million in Q2 2024, indicating improved operational efficiency[39] - Net income for the six months ended April 2025 was $192.0 million, compared to $170.1 million in the prior year, showing a solid growth trajectory[39] - Earnings per share (diluted) for Q2 2025 remained stable at $0.44, consistent with Q2 2024[39] Cash Flow and Financial Management - Free cash flow for the quarter was $18.1 million, after capital expenditures of $78.1 million[5] - The company repurchased $40.6 million of common stock, approximately 537.2 thousand shares, at an average price of $75.60[10] - The company’s interest expense decreased to $24.2 million in Q2 2025 from $28.9 million in Q2 2024, indicating improved financial management[39] Assets and Liabilities - Total current assets increased to $2,125.7 million as of April 30, 2025, up from $1,951.5 million on October 31, 2024, representing a growth of approximately 8.9%[37] - Goodwill increased to $3,864.7 million as of April 30, 2025, compared to $3,838.4 million on October 31, 2024, reflecting an increase of about 0.7%[37] - Total liabilities decreased to $4,125.5 million as of April 30, 2025, down from $4,231.6 million on October 31, 2024, indicating a reduction of approximately 2.5%[37] - Deferred tax assets decreased to $2,141.7 million as of April 30, 2025, from $2,210.3 million on October 31, 2024, a decline of about 3.1%[37] Research and Development - Research and development expenses increased to $45.5 million in Q2 2025, up from $38.9 million in Q2 2024, highlighting a commitment to innovation[39] Corporate Developments and Workforce - The company has a workforce of more than 16,000 and sells products in over 130 countries, impacting over fifty million lives each year[29] - The company plans to host an audio webcast to discuss its second quarter results and current corporate developments, indicating transparency and engagement with stakeholders[28] Other Financial Information - Acquisition and integration-related charges in fiscal 2025 amounted to $3.5 million for redundant personnel costs and $4.8 million for professional services fees[21] - Employee severance costs in the six months ended April 30, 2024, totaled $8.1 million, indicating ongoing restructuring efforts[25] - The company recorded $16.7 million in gains and losses on minority interest investments in the three months ended April 30, 2025, with a significant loss of $15.7 million on disposal of a minority interest investment[26] - The company reported no exit of business charges in the three and six months ended April 30, 2025, suggesting stability in operations[23] - The provision for income taxes increased to $56.8 million in Q2 2025, compared to $41.1 million in Q2 2024, reflecting higher income levels[39]

Core Insights - CooperCompanies reported solid financial results for the fiscal second quarter ended April 30, 2025, with a total revenue increase of 6% year-over-year to $1,002.3 million, driven by growth in both CooperVision and CooperSurgical segments [5][6][42] - The company emphasized its focus on market share expansion, product launches, and capacity expansion projects moving forward [2] Financial Performance - CooperVision (CVI) revenue increased by 5% year-over-year to $669.6 million, with organic growth of 7% [5][42] - CooperSurgical (CSI) revenue rose by 8% year-over-year to $332.7 million, with organic growth of 7% [5][42] - Gross margin improved to 68% from 67% in the previous year, attributed to efficiency gains [6][18] - Non-GAAP diluted earnings per share (EPS) increased by 14% to $0.96, while GAAP diluted EPS remained consistent at $0.44 [5][40] Revenue Breakdown - Total revenue of $1,002.3 million consisted of CooperVision's $669.6 million and CooperSurgical's $332.7 million [5][42] - Revenue by geography showed the Americas at $282.4 million (up 7%), EMEA at $248.6 million (up 5%), and Asia Pacific at $138.6 million (up 3%) [3][42] Operational Highlights - The company generated free cash flow of $18.1 million after capital expenditures of $78.1 million [6][8] - Interest expense decreased to $24.2 million from $28.9 million due to lower interest rates and reduced average debt [6][40] Share Repurchase Program - During the second quarter, CooperCompanies repurchased $40.6 million of common stock, approximately 537.2 thousand shares, at an average price of $75.60 [8] Fiscal Year 2025 Guidance - The company updated its fiscal year 2025 financial guidance, projecting total revenue between $4,107 million and $4,146 million, with organic growth of 5% to 6% [14]

Core Insights - Emerson has made $40 billion in acquisitions over the past four years and is not finished with its acquisition strategy, focusing on high-quality assets in its core domains [1][4] - Recent significant acquisitions include National Instruments for $8.2 billion and AspenTech for $7.2 billion, indicating a strong push into automated test equipment and industrial software [2][3] - The company aims to enhance its operating strength in production automation and test and measurement sectors, with a focus on optimization and software to support its vision of boundless automation [3][6] Acquisition Strategy - Emerson's acquisition strategy is not about high spending but about acquiring the right assets that align with its core competencies [4] - The company is particularly interested in research and development in the automated test sphere, while most acquisitions will likely focus on software that enhances enterprise operations [6][8] - Competitors like ABB, Honeywell, Siemens, Schneider, and Yokogawa are also active in the industrial software acquisition space, indicating a competitive market [7] Technological Focus - Emerson emphasizes the importance of software in the industrial technology stack, aiming for a software-defined hardware advantage to improve productivity, reliability, safety, and sustainability [8] - The company launched 'Project Beyond', described as the industry's first software-defined, operational technology-ready digital platform, to manage AI applications and models [9][10] - The ultimate goal is to transition customers from digitally connected plants to self-optimizing and autonomous operations [8][10]

Core Insights - CooperCompanies published its 2024 Sustainability Report, highlighting initiatives aimed at fostering positive change for people and the planet, along with updated sustainability performance data [1][2] Group 1: Sustainability Initiatives - In 2024, CooperCompanies focused on reducing its plastic footprint, achieved several sustainability certifications, and made significant investments in employee learning and development programs [2] - The report aligns with the Sustainability Accounting Standards Board (SASB) Standards, a recognized framework for evaluating sustainability performance [3] Group 2: Company Overview - CooperCompanies operates through two main business units: CooperVision, a leader in the contact lens industry, and CooperSurgical, which focuses on fertility and women's healthcare [4] - The company is headquartered in San Ramon, California, employs over 16,000 people, sells products in more than 130 countries, and positively impacts over 50 million lives annually [4]

Core Viewpoint - The Cooper Companies, Inc. is set to release its second-quarter fiscal 2025 results on May 9, with expectations of revenue growth and improved earnings compared to the previous year [1] Group 1: Financial Performance - The Zacks Consensus Estimate for revenues is $982 million, reflecting a 5.4% increase from the same quarter last year [1] - The consensus estimate for earnings is 92 cents per share, indicating an 8.2% improvement from the prior-year period [1] - The gross margin improved to 69% in the first quarter, with expectations for further expansion in the upcoming quarter due to higher production levels and cost control initiatives [8] - Operating income grew 16.2% in the first quarter and is anticipated to gain 10-12% in fiscal 2025, suggesting stability in the second quarter [9] Group 2: Segment Performance - Cooper Companies operates under two main segments: CooperVision (CVI) and CooperSurgical (CSI), both of which have shown strength in recent quarters [2] - The CVI segment experienced solid growth driven by strong demand for silicone hydrogel daily lenses, particularly MyDay, with an expected organic growth of 6.5-8.5% for the full year [4] - The myopia management business, particularly MiSight, is projected to grow approximately 40% for fiscal 2025, supported by expansion in key markets [5] - Within the CSI segment, the fertility business posted 1% growth (3% organically) in the last reported quarter, with expectations for high single-digit growth in the fiscal second quarter [6][7] Group 3: Market Trends and Challenges - The quarterly results are expected to follow seasonal trends, with a lighter start compared to the last two reported quarters [2] - Supply constraints for MyDay lenses are noted as a limiting factor that may have impacted second-quarter performance [3] - Foreign exchange is anticipated to be a headwind, potentially impacting EPS by 4% for fiscal 2025 [9]

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 [3] - CooperVision specializes in the contact lens industry, while CooperSurgical is dedicated to fertility and women's healthcare [3] - The company is headquartered in San Ramon, California, employs over 16,000 people, and sells products in more than 130 countries, positively impacting over fifty million lives annually [3] Upcoming Events - CooperCompanies will participate in the William Blair Growth Stock Conference on June 5, 2025, with Brian Andrews, Executive Vice President, Chief Financial Officer & Treasurer, representing the company [1] - The session is scheduled for 11:20 AM CT [1] - A webcast of the event will be available for investors and interested parties on the CooperCompanies' website [2]

Core Insights - Dan Reed, COO of Meta's Reality Labs, is stepping down after nearly 11 years, highlighting ongoing leadership changes amid internal and external pressures [1][2] - Reed described Reality Labs as a "fast-growing, multibillion-dollar consumer technology business" focused on AI wearables, augmented reality, and the metaverse [1] - Meta has restructured Reality Labs, integrating it more closely with its core business, reversing a previous standalone focus on the metaverse [3][4] Company Developments - Reed's departure follows a major restructuring of Reality Labs, with sales, marketing, and analytics teams now reporting to broader Meta leadership [3][4] - Meta COO Javier Olivan has taken over the teams previously led by Reed, aligning other Reality Labs leaders with top executives [4] - Despite a reported 40% year-over-year sales increase in 2024, Reality Labs has incurred over $60 billion in losses since 2020, indicating ongoing financial challenges [5][6] Future Outlook - Meta's chief technology officer, Andrew Bosworth, emphasized that 2025 is a critical year for Reality Labs, with the potential to validate or undermine years of investment in the metaverse [7]

Core Viewpoint - CooperCompanies has appointed Barbara Carbone as an independent director, effective May 1, 2025, enhancing its Board with her extensive experience in finance and human resources [1][2][3]. Company Overview - CooperCompanies is a leading global medical device company with two main business units: CooperVision, focused on contact lenses, and CooperSurgical, dedicated to fertility and women's healthcare [3]. - The company is headquartered in San Ramon, California, employs over 16,000 people, and sells products in more than 130 countries, positively impacting over fifty million lives annually [3]. New Director's Background - Barbara Carbone has nearly four decades of experience, primarily at KPMG LLP, where she served as an Audit Partner for over 24 years [2]. - She has held significant roles, including Chairperson of the KPMG Partnership Audit Committee and National Partner in Charge for Human Resources [2]. - Currently, she chairs the Board of Directors of TrueCar, Inc., and serves on the boards of Limoneira Company and Bob's Discount Furniture [2].