Cooper Companies Q1 Earnings In Line, Revenues Miss, Stock Falls

Core Viewpoint - The Cooper Companies, Inc. reported first-quarter fiscal 2025 adjusted earnings per share (EPS) of 92 cents, reflecting an 8.2% year-over-year increase, while revenues totaled $964.7 million, up 3.6% year over year but missing estimates by 1.7% [1][2][14]. Financial Performance - Adjusted gross profit rose 5.6% to $662.4 million, with an adjusted gross margin expanding by 200 basis points to 69% [9]. - Adjusted operating profit totaled $241.9 million, marking a 16.2% increase year over year, with an adjusted operating margin of 26% [10]. Revenue Breakdown - Total revenues for the first quarter were $964.7 million, with a 5% year-over-year increase at constant exchange rates (CER) and on an organic basis [2]. - CooperVision (CVI) segment revenues were $646.1 million, up 4% year over year, while CooperSurgical (CSI) segment revenues totaled $318.6 million, reflecting a 3% increase [3][6]. Segment Performance - In the CVI segment, Toric and multifocal revenues reached $319.4 million, up 7% year over year, while Sphere and other revenues totaled $326.7 million, up 1% [4]. - The CSI segment's Office and surgical revenues were $198.9 million, up 4%, and Fertility revenues amounted to $119.7 million, up 1% [7]. Geographic Revenue Distribution - Americas revenues were $270.9 million, up 7% year over year, while EMEA revenues totaled $246.5 million, up 3% [5]. - Asia Pacific revenues reached $128.7 million, reflecting a 4% year-over-year increase [6]. Guidance and Outlook - The company expects fiscal 2025 revenues to range from $4,080 million to $4,158 million, indicating an organic improvement of 6-8% [12]. - The CVI segment is projected to generate revenues between $2,733 million and $2,786 million, while the CSI segment is expected to range from $1,347 million to $1,372 million [13]. Market Challenges and Opportunities - The company faced challenges such as currency headwinds and a decline in China's contact lens sales, although the myopia management business in China performed well [16]. - Key growth drivers included strong demand for MyDay daily silicone hydrogel lenses and a 20% expansion in the myopia management portfolio [15].