Core Insights - The Cooper Companies reported revenue of $1.07 billion for the quarter ended October 2025, reflecting a year-over-year increase of 4.6% and an EPS of $1.15, up from $1.04 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.06 billion, resulting in a surprise of +0.45%, while the EPS also surpassed expectations by +3.6% [1] Financial Performance - Revenue by Geography: - Americas: $285.1 million, a +5.4% change year-over-year, but below the estimated $291.49 million [4] - Asia Pacific: $147.4 million, a -1.3% change year-over-year, exceeding the estimated $139.8 million [4] - EMEA: $277.1 million, an +8% change year-over-year, above the estimated $269.49 million [4] - Revenue by Category: - CVI: $709.6 million, a +4.9% change year-over-year, slightly above the estimated $707.83 million [4] - CSI: $355 million, a +3.8% change year-over-year, exceeding the estimated $352.65 million [4] - CSI- Office and surgical: $214.6 million, a +5.8% change year-over-year, above the estimated $208.89 million [4] - CSI- Fertility: $141 million, a +1.3% change year-over-year, below the estimated $144.03 million [4] - CVI- Sphere, other: $365 million, a +3.3% change year-over-year, above the estimated $362.34 million [4] - CVI- Toric and multifocal: $344.6 million, a +6.6% change year-over-year, slightly below the estimated $346.45 million [4] Stock Performance - The Cooper Companies' shares have returned +10.3% over the past month, significantly outperforming the Zacks S&P 500 composite, which changed by +0.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

分组1 - The Cooper Companies reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and showing an increase from $1.04 per share a year ago, resulting in an earnings surprise of +3.60% [1] - The company achieved revenues of $1.07 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.45%, and up from $1.02 billion in the same quarter last year [2] - Over the last four quarters, The Cooper Companies has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 17.4% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.00 on revenues of $1.03 billion, and for the current fiscal year, it is $4.38 on revenues of $4.31 billion [7] - The Medical - Dental Supplies industry, to which The Cooper Companies belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 4.6% year over year, reaching a record of $1.065 billion, with organic growth of 3.4% [9][19] - Non-GAAP earnings per share (EPS) grew by 11% to $1.15, marking the eighth consecutive quarter of beating consensus earnings expectations [7][19] - Free cash flow for Q4 was reported at $150 million, exceeding expectations, with a target of over $2.2 billion in free cash flow from fiscal 2026 to 2028 [7][23] Business Line Data and Key Metrics Changes - CooperVision reported revenue of $710 million, up 4.9% year over year, with organic growth of 3.2% [10][19] - CooperSurgical achieved quarterly revenue of $356 million, up 4% or 3.9% organically, driven by solid execution [14][19] - MyDay lenses showed strong growth, particularly in toric and multifocal categories, while clariti lenses experienced a decline of approximately 2% [10][28] Market Data and Key Metrics Changes - The Americas region grew by 5%, driven by daily silicone hydrogel lenses, while EMEA grew by 3% [11] - Asia-Pacific remained flat, with a significant 28% decline in China attributed to weakness in low-margin e-commerce channels [11][50] - The overall contact lens market is trending towards premium offerings, benefiting the MyDay portfolio [10][11] Company Strategy and Development Direction - The company is focused on consistent market share gains for CooperVision, with an emphasis on the MyDay Premium Daily Silicone Hydrogel Lens portfolio [6][9] - A strategic review has been initiated to explore opportunities for unlocking long-term shareholder value, including potential separation of business units [9][38][79] - The board has authorized an increase in the share repurchase plan to $2 billion, reinforcing the commitment to returning capital to shareholders [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, expecting strong revenue growth driven by MyDay sales and new private label contracts [17][53] - The company anticipates a conservative approach to guidance, particularly in the fertility segment, while remaining optimistic about long-term growth in that market [15][56] - Management highlighted the importance of maintaining fiscal responsibility and not chasing revenues at all costs, particularly in challenging markets like China [50][51] Other Important Information - The company has successfully remediated material weaknesses related to IT controls from fiscal 2024 [24] - Significant cost savings from recent reorganization efforts are expected to enhance profitability and cash flow [20][23] Q&A Session Summary Question: Clariti product line performance - Clariti was down a couple of percent this quarter, approaching $400 million in annualized revenue, with ongoing efforts to reposition the product [27][28] Question: Strategic review timeline and thoughts on separation - A strategic review is underway, with updates expected in the next earnings call, and management's position on potential separation remains unchanged [37][38][41] Question: Market growth assumptions for 2026 - The market is expected to grow at 4%-5%, with pricing power anticipated to remain stable [43][45] Question: Asia-Pacific market dynamics - Asia-Pacific faced challenges due to low-margin e-commerce channels, but management expects less detriment in fiscal 2026 [49][50] Question: Free cash flow outlook - The increase in free cash flow is driven by consistent performance and reduced capital expenditures, with expectations of over $2.2 billion in free cash flow from fiscal 2026 to 2028 [56][59] Question: Product pipeline and innovation - The company is excited about upcoming product launches, including MyDay and MiSight, which are expected to drive growth [90][91]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 4.6% year over year, reaching a record of $1.065 billion, with organic growth of 3.4% [8][18] - Non-GAAP earnings per share (EPS) grew by 11% to $1.15, marking the eighth consecutive quarter of beating consensus earnings expectations [5][18] - Free cash flow for Q4 was strong at $150 million, with a total fiscal year repurchase of nearly $300 million, representing about two-thirds of free cash flow [5][19] Business Line Data and Key Metrics Changes - CooperVision reported revenue of $710 million, up 4.9% year over year, with organic growth of 3.2%, driven by improved availability of MyDay lenses [9][10] - CooperSurgical achieved quarterly revenue of $356 million, up 4% or 3.9% organically, with growth in fertility and surgical segments [14][15] Market Data and Key Metrics Changes - The Americas region grew by 5%, while EMEA grew by 3%, slightly below expectations due to market weakness in some countries [10][14] - Asia-Pacific was flat, primarily due to a 28% decline in China, attributed to weakness in low-margin e-commerce channels [10][12] Company Strategy and Development Direction - The company is focused on delivering consistent market share gains for CooperVision, with an emphasis on the MyDay Premium Daily Silicone Hydrogel Lens portfolio [4][6] - A formal strategic review has been initiated to explore opportunities for unlocking long-term shareholder value, including potential separation of business units [8][31][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, expecting strong revenue growth driven by MyDay sales and new private label contracts [39][60] - The company anticipates a conservative approach to guidance, particularly in the fertility segment, while remaining optimistic about long-term growth prospects [15][60] Other Important Information - The board authorized an increase in the share repurchase plan to $2 billion, reinforcing the commitment to returning capital to shareholders [6][19] - The company has successfully remediated material weaknesses related to IT controls from fiscal 2024 [24] Q&A Session Summary Question: Clariti product line performance - Clariti was down a couple of percent this quarter, approaching $400 million in annualized revenue, with ongoing efforts to reposition the product line [25][26] Question: Strategic review process - A strategic review is underway, with updates expected in the next earnings call, focusing on driving long-term shareholder value [30][31] Question: Market growth assumptions - The market is expected to grow at 4%-5% in fiscal 2026, with pricing power remaining stable [33][34] Question: Asia-Pacific market dynamics - The company faced challenges in Asia-Pacific, particularly in low-margin e-commerce channels, but expects less detriment in fiscal 2026 [37][38] Question: Free cash flow outlook - The increase in free cash flow is attributed to consistent performance and reduced capital expenditures, with expectations of over $2.2 billion in free cash flow from fiscal 2026 to 2028 [23][42] Question: Paragard product expectations - Guidance for Paragard includes conservatism due to potential competitive launches, with expectations for flat to low single-digit growth [55] Question: Pipeline and product launches - The company is excited about upcoming product launches, including MyDay and MiSight, which are expected to drive growth [58][59]

CooperCompanies | | | | FY26 Guidance | Q1 2026 Guidance | | --- | --- | --- | --- | --- | | | Total | $4,299 - | $4,338 | $1,019 - $1,030 | | | | (4.5% - | 5.5% organic growth) | (3% - 4% organic growth) | | e | | | | | | u n e | CooperVision | $2,900 - | $2,925 | $693 - $700 | | v | | (4.5% - | 5.5% organic growth) | (3.5% - 4.5% organic growth) | | e R | | | | | | | CooperSurgical | $1,399 - | $1,413 | $327 - $330 | | | | (4% - | 5% organic growth) | (2% - 3% organic growth) | | P | | | | | | A A | EPS | ...

Revenue Performance - Fourth quarter 2025 revenue reached $1,065.2 million, a 5% increase year-over-year, with organic growth of 3%[3] - Fiscal year 2025 revenue totaled $4.1 billion, up 5% from fiscal 2024, with organic growth of 4%[11] - Fiscal first quarter 2026 revenue guidance is set between $1,019 million and $1,030 million, with organic growth projected at 3% to 4%[13] - Fiscal 2026 total revenue guidance is between $4,299 million and $4,338 million, with organic growth of 4.5% to 5.5%[13] - Total net sales for the three months ended October 31, 2025, were $1,065.2 million, representing a 5% year-over-year increase from $1,018.4 million in the same period of 2024[49] - CooperVision's net sales for the fourth quarter of 2025 were $709.6 million, with an organic growth rate of 3%[51] - CooperSurgical's net sales for the fourth quarter of 2025 were $355.6 million, also reflecting an organic growth rate of 4%[51] Earnings and Profitability - Fourth quarter 2025 non-GAAP diluted EPS was $1.15, an 11% increase year-over-year, while GAAP diluted EPS was $0.43, down 27%[3] - GAAP net income for the three months ended October 31, 2025, was $84.6 million, with an EPS of $0.43, compared to $117.5 million and $0.58 EPS for the same period in 2024, representing a decrease of 28.0% in net income[25] - Non-GAAP net income for the twelve months ended October 31, 2025, was $826.5 million, with an EPS of $4.13, compared to $740.5 million and $3.69 EPS for the same period in 2024, indicating an increase of 11.6% in net income[25] - The company reported a net income of $374.9 million for the year ended October 31, 2025, down from $392.3 million in 2024, a decrease of about 4.3%[49] - Diluted earnings per share for the year ended October 31, 2025, were $1.87, compared to $1.96 in 2024, representing a decline of approximately 4.6%[49] - Gross profit for the year ended October 31, 2025, was $2,682.1 million, up from $2,595.7 million in 2024, indicating a growth of approximately 3.4%[49] Share Repurchase and Cash Flow - The company repurchased $197.3 million of common stock in Q4 2025, with a total of $290.1 million repurchased for the fiscal year[13] - The Board of Directors expanded the share repurchase program by $1 billion, bringing total authorization to $2 billion[13] - The company expects free cash flow to exceed $2.2 billion from 2026 to 2028, supporting share repurchases and strategic investments[2] Charges and Expenses - Total charges related to acquisition and integration for the three months ended October 31, 2025, amounted to $15.7 million, compared to $7.2 million in the same period of 2024, reflecting a 118.1% increase[25] - The company incurred $24.6 million in exit of business charges for the three months ended October 31, 2025, while no such charges were recorded in the same period of 2024[25] - The company reported a total of $451.6 million in total charges for the twelve months ended October 31, 2025, compared to $348.2 million in 2024, marking a 29.7% increase[25] - Research and development expenses for the year ended October 31, 2025, totaled $172.2 million, compared to $155.1 million in 2024, reflecting an increase of 11%[49] Market Presence and Future Outlook - The company is focused on expanding its market presence through acquisitions, specifically mentioning the obp Surgical and Cook Medical integration efforts[28] - Future guidance for fiscal year 2026 includes anticipated growth in revenues and expected savings from ongoing reorganization activities[40] - The company has a workforce of over 15,000 and sells products in over 130 countries, positively impacting over fifty million lives each year[39] Balance Sheet - Total assets as of October 31, 2025, were $12,394.8 million, a slight increase from $12,315.2 million as of October 31, 2024[47] - Total liabilities decreased to $4,155.7 million as of October 31, 2025, from $4,231.6 million in 2024, a reduction of about 1.8%[47] Other Considerations - The company emphasized the importance of ongoing research and development activities and the potential impact of environmental regulations on future operations[43]

Core Viewpoint - Cooper Companies is initiating a formal strategic review to identify opportunities for enhancing long-term shareholder value, resulting in an 11.7% increase in shares during extended trading [1] Group 1 - The strategic review aims to enhance long-term shareholder value [1] - The announcement led to a significant increase in the company's share price by 11.7% in after-hours trading [1]

Core Points - CooperCompanies has appointed Colleen Jay as the new Chair of the Board, effective January 2, 2026, succeeding Robert Weiss, who will remain on the Board for reelection [1][2] - The company is undergoing a formal strategic review to identify opportunities for enhancing long-term shareholder value [1][4] Leadership Changes - Colleen Jay has been on the Board since 2016 and has a strong background in global operational leadership, having retired from Procter & Gamble in 2017 after 32 years [2] - Robert Weiss has been a significant figure in CooperCompanies' success for nearly five decades, serving in various leadership roles including CEO from 2007 to 2018 [3] Strategic Review - The strategic review aims to improve performance in core markets, expand market share, enhance operational efficiency, and generate strong returns through disciplined capital deployment [4] - The company plans to focus on share repurchases under a $2 billion share repurchase program during this review period [4] Company Overview - CooperCompanies operates in the medical device sector with two main business units: CooperVision, a leader in the contact lens industry, and CooperSurgical, focused on fertility and women's healthcare [5] - The company has a workforce of over 15,000 and sells products in more than 130 countries, positively impacting over 50 million lives annually [5]

Core Insights - CooperCompanies reported strong financial results for fiscal year 2025, exceeding consensus expectations for revenue, earnings, and free cash flow, with a focus on long-term shareholder value through growth and profitability initiatives [2][5]. Financial Performance - Fourth quarter revenue reached $1,065.2 million, a 5% increase year-over-year, with organic growth of 3% [5][6]. - Fiscal year 2025 revenue totaled $4.1 billion, also up 5% from the previous year, with organic growth of 4% [5][13]. - GAAP diluted earnings per share (EPS) for Q4 was $0.43, down 27%, while fiscal year GAAP diluted EPS was $1.87, down 4% [5][27]. - Non-GAAP diluted EPS for Q4 was $1.15, up 11%, and for the fiscal year, it was $4.13, up 12% [5][27]. Segment Performance - CooperVision (CVI) revenue for Q4 was $709.6 million, a 5% increase year-over-year, with organic growth of 3% [6][59]. - CooperSurgical (CSI) revenue for Q4 was $355.6 million, up 4% year-over-year, with organic growth also at 4% [12][59]. Margins and Costs - Gross margin for Q4 was 61%, down from 67% in the previous year, primarily due to reorganization costs [6][13]. - Non-GAAP gross margin was 66%, down 70 basis points from last year [6][13]. - Operating margin for Q4 was 13%, compared to 19% in the previous year, while non-GAAP operating margin improved to 27% [6][13]. Cash Flow and Share Repurchase - Cash provided by operations was $247.8 million, leading to free cash flow of $149.8 million after capital expenditures of $98.0 million [6][13]. - The company repurchased $197.3 million of common stock in Q4 and $290.1 million for the fiscal year, with a total share repurchase authorization of $2 billion [13][14]. Future Guidance - For fiscal year 2026, the company expects total revenue between $4.299 billion and $4.338 billion, with organic growth of 4.5% to 5.5% [20]. - Non-GAAP diluted EPS guidance for fiscal 2026 is projected to be between $4.45 and $4.60 [20].

Core Insights - The Cooper Companies, Inc. is set to release its fourth-quarter earnings results on December 4, with expected earnings of $1.11 per share, an increase from $1.04 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.06 billion, up from $1.02 billion a year earlier [1] Share Repurchase Program - The board of Cooper Companies approved a $1 billion increase in its share repurchase program on September 17 [2] Stock Performance - Cooper Companies shares rose 0.2% to close at $75.98 on Wednesday [3] Analyst Ratings - Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $72 [6] - Barclays initiated coverage with an Overweight rating and a price target of $85 [6] - JP Morgan maintained a Neutral rating and reduced the price target from $76 to $66 [6] - Baird maintained an Outperform rating and cut the price target from $97 to $85 [6] - Stifel maintained a Buy rating and lowered the price target from $90 to $85 [6]