Cooper Companies Q1 Earnings Likely to Reflect Seasonal Trends

Core Viewpoint - The Cooper Companies, Inc. is set to release its first-quarter fiscal 2025 results on March 6, with expectations of revenue growth and earnings improvement compared to the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for revenues is $982 million, reflecting a 5.4% increase from the same quarter last 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 in the last four quarters, with an average surprise of 4.87% [1]. 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 [3]. - The CVI segment is expected to grow organically by 6.5-8.5% for the full year, with a projected 7.1% organic growth for the first quarter [5]. - The myopia management business, particularly MiSight, is forecasted to grow approximately 40% for fiscal 2025, supported by expansion in key markets [6]. - The CSI segment's fertility business posted 15% growth in the last reported quarter, driven by strong demand and technological advancements [7]. Group 3: Challenges and Opportunities - Supply constraints for MyDay lenses may have impacted first-quarter performance, but new manufacturing lines are expected to improve availability [4][5]. - PARAGARD, a non-hormonal IUD, faced a 10% decline in the fourth quarter due to increased competition, and sales are anticipated to remain under pressure in the upcoming quarter [9]. - The gross margin improved to 66.9% in the fourth quarter, and is expected to expand further in the soon-to-be-reported quarter due to higher production levels and cost control initiatives [10][11]. Group 4: Operational Insights - Operating income grew 16.2% in the fourth quarter and is anticipated to gain 10-12% in fiscal 2025, indicating a stable trajectory [11]. - Foreign exchange is expected to impact revenues by 1.5% and EPS by 4% in the upcoming quarter [11].