COO Gains as Q4 Earnings & Sales Beat Estimates, MyDay Adoption Rises

Core Insights - The Cooper Companies, Inc. (COO) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.15, an 11% year-over-year increase, surpassing the Zacks Consensus Estimate of $1.11 by 3.6% [1] - Revenues reached $1.065 billion, reflecting a 5% year-over-year increase on a reported basis and a 3% organic growth, also beating the Zacks Consensus Estimate by 0.5% [2] Financial Performance - GAAP EPS for the quarter was 43 cents, down 27% year over year [1] - Adjusted gross profit rose 3.4% to $704.7 million, but adjusted gross margin contracted by almost 70 basis points to 66% due to an unfavorable product mix and tariff headwinds [14] - Selling, general and administrative expenses increased by 7.1% to $419.2 million, while research and development expenses rose by 9.8% to $41.4 million [15] - Adjusted operating profit totaled $288 million, reflecting a 9.4% increase from the previous year, with an adjusted operating margin expanding by 110 basis points to 27% [15] Segment Performance - CooperVision (CVI) segment revenues were $709.6 million, up 5% year over year, driven by MyDay contract wins and strong MiSight sales [4][7] - The CVI segment's Toric and multifocal revenues totaled $344.6 million, up 7% year over year, while Sphere and other revenues reached $365 million, up 3% year over year [8] - The CooperSurgical (CSI) segment's revenues totaled $355.6 million, up 4% year over year, with Office and surgical revenues at $214.6 million, up 6% [11][12] Geographic Performance - Americas' revenues totaled $285.1 million, up 5% year over year, while EMEA revenues amounted to $277.1 million, up 8% year over year [9] - Asia Pacific revenues were $147.4 million, down 1% year over year, primarily due to a 28% decline in China [10] Future Outlook - For fiscal 2026, the company expects revenues in the range of $4,299-$4,338 million, indicating an organic improvement of 3-4% from the prior year [17] - The CVI segment's revenues are projected to be between $2,900-$2,925 million, suggesting an organic improvement of 4.5-5.5% [17] - The CSI segment's revenues are anticipated to be in the range of $1,399-$1,413 million, indicating an organic improvement of 4-5% [18] Growth Catalysts - The company is set to benefit from the global rollout of the MyDay portfolio, expanded private-label wins, and new product launches in 2026 [20] - MiSight is expected to deliver another 20-25% growth, supported by launches in Europe and Japan [20] - The company aims to unlock approximately $50 million in annual savings through AI-driven operational efficiencies [21]