Cooper Companies Likely to Beat Q3 Earnings Estimate on Lens Demand

Core Viewpoint - The Cooper Companies, Inc. is expected to report strong third-quarter fiscal 2025 results, with anticipated revenue growth of 5.4% year-over-year and earnings per share (EPS) growth of 8.2% [2][10]. Group 1: Financial Performance - The Zacks Consensus Estimate for revenues is $982 million, reflecting a 5.4% increase from the previous 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, with an average surprise of 3.18% over the last four quarters [1]. Group 2: Segment Performance - Cooper Companies operates under two main segments: CooperVision (CVI) and CooperSurgical (CSI), both of which have shown strength recently [3]. - The CVI segment is expected to benefit from rising demand for contact lenses, with projected sales growth of 6-7% in fiscal 2025 [8]. - The CSI segment may face challenges due to weak fertility demand, but growth in minimally invasive surgical devices is expected to partially offset this weakness [11][12]. Group 3: Product Demand and Innovations - The CVI segment has seen solid growth across all geographies, particularly in The Americas, and is expected to continue this trend [5]. - Strong demand for premium brands like MyDay is anticipated to persist, supported by new market availability and expanded product offerings [6]. - The company is also launching new products, such as MyDay Energy in Canada and upgraded Clarity One Day Sphere in Japan, which are expected to contribute to revenue growth [4]. Group 4: Market Trends and Challenges - The overall market for contact lenses is projected to grow by 4-6% in 2025, benefiting Cooper Companies due to its leadership in several categories [5]. - The fertility segment is experiencing a decline, particularly in the Asia-Pacific region, which may impact overall sales [12]. - Despite challenges in the fertility market, the company anticipates continued interest in its PARAGARD product, although sales may decline in the upcoming quarter [13].