The Cooper Companies(COO) - 2024 Q3 - Quarterly Results

Revenue Growth - Revenue increased 8% year-over-year to $1,002.8 million, with CooperVision (CVI) revenue up 7% to$ 675.6 million and CooperSurgical (CSI) revenue up 9% to $327.2 million[1] - CVI revenue by category: Toric and multifocal revenue up 12% organically to$ 326.4 million, and Sphere and other revenue up 8% organically to $349.2 million[4] - CSI revenue by category: Office and surgical revenue up 2% organically to$ 197.9 million, and Fertility revenue up 10% organically to $129.3 million[6] - Net sales for the three months ended July 31, 2024, were$ 1,002.8 million, up 7.8% from $930.2 million in the same period in 2023[30] - CooperVision reported constant currency revenue growth of 9% and organic revenue growth of 10% in 3Q24[31] - CooperSurgical reported constant currency revenue growth of 10% and organic revenue growth of 5% in 3Q24[31] - Total constant currency revenue growth for the company was 10% in 3Q24, with organic revenue growth at 8%[31] Earnings and Profitability - GAAP diluted EPS of$ 0.52, up 22% from last year's third quarter, and non-GAAP diluted EPS of $0.96, up 14%[1] - Gross margin remained at 66%, with non-GAAP gross margin improving to 67% from 66% last year[2] - Operating margin increased to 19% from 16% last year, with non-GAAP operating margin rising to 26% from 24%[2] - GAAP Net Income for the three months ended July 31, 2024, was$ 104.7 million, compared to $85.3 million in the same period in 2023, representing a 22.7% increase[14] - Non-GAAP Net Income for the three months ended July 31, 2024, was$ 191.9 million, compared to $167.2 million in the same period in 2023, representing a 14.8% increase[14] - GAAP Net Income for the nine months ended July 31, 2024, was$ 274.8 million, compared to $209.7 million in the same period in 2023, representing a 31.0% increase[14] - Non-GAAP Net Income for the nine months ended July 31, 2024, was$ 532.0 million, compared to $465.1 million in the same period in 2023, representing a 14.4% increase[14] - Net income for the three months ended July 31, 2024, was$ 104.7 million, compared to $85.3 million in the same period in 2023[30] - Diluted earnings per share for the three months ended July 31, 2024, were$ 0.52, up from $0.43 in the same period in 2023[30] - Gross profit for the three months ended July 31, 2024, was$ 663.0 million, up from $610.0 million in the same period in 2023[30] - Operating income for the three months ended July 31, 2024, was$ 192.5 million, compared to $151.6 million in the same period in 2023[30] Cash Flow and Capital Expenditures - Free cash flow of$ 118.5 million, generated from $207.5 million in cash provided by operations and$ 89.0 million in capital expenditures[3] Guidance - Fiscal 2024 total revenue guidance raised to $3,892 -$ 3,913 million, with organic growth of 8% to 8.5%[7] - Fiscal 2024 non-GAAP diluted EPS guidance of $3.64 -$ 3.67[7] - Fiscal Q4 2024 total revenue guidance of $1,015 -$ 1,036 million, with organic growth of 7% to 9.5%[7] Charges and Expenses - Acquisition and integration-related charges for the three months ended July 31, 2024, were $1.1 million, compared to$ 13.2 million in the same period in 2023, representing a 91.7% decrease[14] - Business optimization charges for the three months ended July 31, 2024, were $4.4 million, compared to$ 2.7 million in the same period in 2023, representing a 63.0% increase[14] - Medical device regulations charges for the three months ended July 31, 2024, were $5.6 million, compared to$ 5.5 million in the same period in 2023, representing a 1.8% increase[14] - Intra-entity asset transfers for the three months ended July 31, 2024, were $34.5 million, compared to$ 27.3 million in the same period in 2023, representing a 26.4% increase[14] - The acquisition and integration-related charges in fiscal 2024 were primarily related to the Cook Medical acquisition and integration expenses[15] - The acquisition and integration-related charges in fiscal 2023 were primarily related to Generate acquisition and integration expenses[15] - Research and development expenses increased to $39.0 million in the three months ended July 31, 2024, from$ 36.5 million in the same period in 2023[30] Assets and Financial Position - Total assets increased to $12,108.0 million in July 2024 from$ 11,658.9 million in October 2023[29]