Cooper Companies Launches Portfolio Review To 'Unlock Value'

Core Viewpoint - Cooper Companies reported better-than-expected fourth-quarter earnings and provided optimistic financial guidance, leading to a rise in stock price [1][7] Financial Performance - The company reported fourth-quarter adjusted earnings of $1.15 per share, an 11% increase year over year, surpassing the consensus estimate of $1.11 [2] - Total sales for the quarter were $1.065 billion, nearly matching the consensus of $1.061 billion, reflecting a 5% year-over-year increase and 3% organic growth [2] - The CooperVision segment generated sales of $709.6 million, a 5% increase from the previous year's fourth quarter, with 3% growth in constant currency and organically [3] - CooperSurgical reported revenue of $355.6 million, up 4% year over year, with consistent growth in constant currency and organically [3] Future Outlook - For the first quarter of 2026, the company expects sales between $1.019 billion and $1.030 billion, compared to the consensus of $1.025 billion, with adjusted earnings projected at $1.02 to $1.04 per share against a consensus of $1.00 [4] - The company anticipates organic growth of 3% to 4% for 2026 and adjusted earnings for fiscal 2026 to be between $4.45 and $4.60 per share, exceeding the consensus of $4.09 [4] - Projected sales for fiscal 2026 are estimated to be between $4.299 billion and $4.338 billion, compared to the consensus of $4.089 billion [4] - Free cash flow for fiscal 2026 is expected to be between $575 million and $625 million, with projections of over $2.2 billion in free cash flow from fiscal 2026 to fiscal 2028 [5] Analyst Reactions - Needham maintains a Buy rating and raises the price target from $94 to $100 [6] - Mizuho keeps an Outperform rating and increases the price target from $85 to $100 [6] - Baird maintains an Outperform rating and raises the price target from $85 to $98 [6] - JP Morgan retains a Neutral rating and raises the price target from $66 to $78 [6] - Wells Fargo maintains an Equal-Weight rating and increases the price target from $72 to $82 [6]