Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [7][26] - Non-GAAP earnings per share (EPS) grew by 15% to $1.1, with free cash flow reported at $165 million [7][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [26] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity and e-commerce weakness in Asia Pacific [8][10] - CooperSurgical posted revenues of $342 million, up 4.5% or 2% organically, with fertility revenues growing 6% [20][21] Market Data and Key Metrics Changes - EMEA region grew by 14% or 6% organically, becoming CooperVision's largest revenue region globally [10] - The Americas grew by 2% or 3% organically, while Asia Pacific saw a 1% increase but a 5% organic decline [10] Company Strategy and Development Direction - The company aims to leverage the strong momentum of MyDay and upcoming product launches to outpace the contact lens market and gain market share [24] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [7][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from Clarity and e-commerce challenges in Asia Pacific but expressed confidence in the long-term outlook for both CooperVision and CooperSurgical [20][24] - The company expects to generate approximately $2 billion in free cash flow over the next three fiscal years, with a focus on debt reduction and share repurchases [30][31] Other Important Information - The company is implementing mitigation strategies for tariffs, expecting a $24 million lower impact than previously anticipated [30] - Significant progress has been made in IT upgrades and organizational efficiency initiatives [30][71] Q&A Session Summary Question: How does the core CVI portfolio compare to the market for fiscal 2026? - Management indicated that the core portfolio is expected to be at least in line with the market, with additional growth from MiSight [37][38] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in customer preference towards MyDay [41][42] Question: What is the outlook for the contact lens market? - Management acknowledged a slowdown in market growth but remains optimistic about future performance driven by silicone hydrogel lenses and multifocal products [19][50] Question: What are the expectations for the fertility market? - Management expects a rebound in the fertility market as clinics begin investing again, despite near-term pressures [20][110] Question: What is the situation with PARAGARD? - Management reported declining volumes for PARAGARD but offsetting revenue through pricing strategies [114][116]

Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [5][25] - Non-GAAP earnings per share (EPS) grew by 15% year over year to $1.1, with free cash flow reported at $165 million [5][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [25] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity orders [6][9] - CooperSurgical posted revenues of $342 million, up 4.5% year over year, with fertility revenues growing 6% [20][21] - MyDay lenses showed double-digit growth, with MyDay Multifocal growing 20% [11][13] Market Data and Key Metrics Changes - EMEA region grew 14% or 6% organically, becoming CooperVision's largest revenue region globally [9] - The Americas grew 2% or 3% organically, while Asia Pac grew 1% but declined 5% organically due to Clarity pressure [9][10] - The overall contact lens market is expected to continue mid-single-digit growth, driven by a shift towards silicone hydrogel lenses [19] Company Strategy and Development Direction - The company aims to leverage strong MyDay momentum and upcoming product launches to gain market share [23][30] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [5][28] - Ongoing restructuring efforts to enhance efficiency and leverage IT upgrades [73][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the contact lens market, particularly in Asia Pac, but remains optimistic about long-term growth in fertility and contact lenses [20][50] - Guidance for Q4 indicates expected organic growth of 2% to 4% for both CooperVision and CooperSurgical, factoring in potential headwinds [22][23] - Confidence in achieving $2 billion in free cash flow over the next three fiscal years, supported by improved operating margins [30][102] Other Important Information - The company repurchased $52 million worth of stock during the quarter, with approximately $164 million remaining under the repurchase plan [28] - Tariff impacts are expected to be lower than previously anticipated, with mitigation strategies in place [29][30] Q&A Session Summary Question: How does the core CVI portfolio compare to market growth for fiscal 2026? - Management indicated that the core portfolio has lagged the market but expects to be at least in line with market growth, with additional contributions from MySight [36][40] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in orders towards MyDay [41][45] Question: What is the outlook for the contact lens market's growth? - Management acknowledged a slowdown in market growth but remains confident in the long-term fundamentals, including pricing and consumer trends [50][52] Question: What are the drivers for expected Q4 rebound in fertility? - Management highlighted improvements in genomics and consumables, along with anticipated investments from fertility clinics [110][114] Question: What is the situation with PARAGARD and market dynamics? - Management confirmed no new competitive launches but acknowledged declining volumes, offset by pricing strategies [117][119]

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].

Summary of The Cooper Companies (COO) FY Conference Call - June 05, 2025 Company Overview - The Cooper Companies is a global medical device company with approximately two-thirds of its business in contact lenses and one-third in women's health, primarily focusing on fertility [3][4] - The company operates in over 30 countries with a revenue mix of more than half generated outside the U.S. [5] Core Business Insights - Cooper is a leader in the fertility market, with 40% of its surgical business related to fertility [4] - The company is experiencing secular growth trends in both vision and surgical segments, with a commitment to growing faster than the market [7][8] - CooperVision is projected to grow by 6-7% this year, while the market is expected to grow by 4-6% [8] Financial Performance and Guidance - The company aims for gross margin and operating margin expansion, despite facing foreign exchange (FX) headwinds since 2019 [9] - Free cash flow is projected to be between $350 million and $400 million, with a goal to improve free cash flow margin over the coming years [10][11] - The company has a history of consistent growth, with the exception of 2020 during COVID-19 [7] Market Dynamics - The contact lens market grew by 7% last year, with a fourth-quarter growth of 9%, but the company believes the actual growth is closer to 6% due to inventory dynamics [12][13] - Competitors like J&J and Alcon reported mid-single-digit growth, leading Cooper to adjust its market growth expectations to 4-6% [14] - Fitting activity remains strong, with consumers preferring premium products, particularly in the MyDay portfolio [17][20] Product Innovations - Cooper offers a differentiated portfolio, including myopia control products that are unique in the market [6] - The MyDay product line includes a wide range of toric and multifocal lenses, with the recent launch of Energous, which provides a digital boost for myopic users [23][24] - The company plans to launch MiSight, a myopia control lens, in Europe next year, which is expected to drive significant growth [25][30] Strategic Initiatives - Cooper is focusing on expanding its production capacity and improving operational efficiencies to leverage past investments [48][50] - The company is prioritizing free cash flow towards debt reduction and has engaged in stock buybacks due to perceived undervaluation [51][52] - The surgical segment is expected to see mid-single-digit growth as the fertility market rebounds [58][59] Future Outlook - The company anticipates that the contact lens market will continue to grow at 4-6% next year, with CooperVision expected to outperform this growth [57] - The surgical business is also projected to recover, contributing to overall revenue growth [59] - Cooper is optimistic about the potential for increased free cash flow due to reduced capital expenditures and improved operational performance [61][62] Additional Insights - The company is actively working on integrating its surgical and vision businesses to drive better margin expansion [49] - There is a focus on educating healthcare professionals and consumers about myopia control products, particularly in new markets like Japan [39][40] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market dynamics, and financial outlook.

Financial Data and Key Metrics Changes - Consolidated revenues were $1,002 million, up 6% year over year or up 7% organically [7] - Non-GAAP earnings were $0.96, up 14% year over year [24] - Consolidated gross margin was 68%, up from 67.3% [21] - Operating expenses increased 6% but declined as a percentage of revenue to 43.1% [22] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $670 million, up 5% or up 7% organically [7] - CooperSurgical posted revenues of $333 million, up 8% or up 7% organically [14] - Daily silicone hydrogel lenses grew 10%, with Myopia management portfolio growing 19% [8][11] - Fertility revenues were $127 million, up 3% and up 2% organically, but lower than expected due to market softness [15] Market Data and Key Metrics Changes - The Americas grew 8%, EMEA grew 6%, and Asia Pac grew 5% for CooperVision [8] - The contact lens industry grew 4% in calendar Q1, leading to a reduction in growth expectations to 4% to 6% for the year [18][19] - Fertility market growth expectations were reduced to low single digits due to market softness, particularly in Asia Pac [19][41] Company Strategy and Development Direction - The company is focusing on operational improvements and product launches to drive growth [6] - There is a strong emphasis on increasing availability of MyDay and MiSight products in new markets [9][14] - The company is adjusting its revenue guidance to reflect solid Q2 performance and updated market assumptions [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more complex global operating environment but emphasized strong execution and market share gains [6][20] - There is optimism about long-term growth fundamentals in fertility despite current market softness [16][41] - Management expects organic growth in Q4 to be stronger than Q3, supported by product rollouts and improved fitting activity [25][52] Other Important Information - The company repurchased approximately 537,000 shares for roughly $40.6 million, leaving $215.8 million available under the repurchase plan [24] - Tariffs are expected to have a negative impact of roughly $4 million on the cost of goods this year [26] - Currency fluctuations are anticipated to have a 0.5% headwind to revenues and a 1% headwind to earnings [26] Q&A Session Summary Question: Contact lens end market performance - Management noted that channel inventory pressures are affecting growth rates, but fitting activity remains strong [30][31] Question: Lower market growth assumption for Vision Care - The reduction in guidance is attributed to general market softness rather than specific pricing or volume issues [34][36] Question: Fertility market softness in Asia - Management indicated that the decline in fertility cycles in Asia is partly due to cultural factors and economic pressures [41][42] Question: Changes in consumer behavior regarding contact lens purchases - Management confirmed that consumers are buying shorter supply durations, impacting revenue despite strong fitting activity [46][47] Question: Guidance for Q3 and Q4 - Management expects Q3 results to be below the lower end of guidance, with Q4 anticipated to be at or above the top end [52] Question: Inventory expectations for the rest of the year - Management anticipates continued pressure on inventory levels throughout the year, affecting overall market growth [55][56] Question: Margin expectations moving forward - Management expects continued improvement in margins due to operational efficiencies and prior investment returns [70]

Financial Data and Key Metrics Changes - Consolidated revenues were $1,002 million, up 6% year over year or up 7% organically [6][21] - Non-GAAP earnings were $0.96, up 14% year over year [6][23] - Consolidated gross margin improved to 68%, up from 67.3% [21] - Operating expenses increased by 6%, but declined as a percentage of revenue to 43.1% [21] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $670 million, up 5% or up 7% organically [6][21] - CooperSurgical posted revenues of $333 million, up 8% or up 7% organically [6][21] - Daily silicone hydrogel lenses grew 10%, with MyDay and Clarity leading the growth [7][9] - Myopia management portfolio grew 19%, with MiSight up 35% [7][11] Market Data and Key Metrics Changes - The Americas grew 8%, EMEA grew 6%, and Asia Pacific grew 5% [7] - Fertility revenues were $127 million, up 3% and up 2% organically, but lower than expected due to market softness in Asia Pacific [14][15] - Office and Surgical sales were $206 million, up 13% or up 10% organically [15][16] Company Strategy and Development Direction - The company is focusing on expanding its product availability in new markets and channels, particularly for MyDay and MiSight [8][9] - There is a strong emphasis on operational improvements and leveraging existing investments to drive growth [21][22] - The company is optimistic about long-term growth in fertility despite current market softness [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more complex global operating environment but emphasized strong execution and market share gains [5][6] - The company is adjusting its revenue guidance to reflect solid Q2 performance and updated market assumptions [17][24] - Management expects organic growth in Q4 to be stronger than Q3, driven by product rollouts and improved fitting activity [24] Other Important Information - The company repurchased approximately 537,000 shares for roughly $40.6 million, leaving $215.8 million available under its repurchase plan [23] - Tariffs are expected to have a negative impact of roughly $4 million on the cost of goods this year [25] - Currency fluctuations are anticipated to have a 0.5% headwind to revenues and a 1% headwind to earnings [25] Q&A Session Summary Question: Contact lens end market performance - Management noted that channel inventory pressures are affecting growth rates, but fitting activity remains strong [29][30] Question: Lower market growth assumption for Vision Care - The reduction in guidance is attributed to general market softness rather than specific pricing or volume issues [33][36] Question: Changes in market behavior and consumer purchasing - Management confirmed that consumers are buying shorter supply durations, impacting revenue despite strong fitting activity [45][46] Question: Fertility market softness in Asia - The decline in fertility cycles in Asia Pacific is partly attributed to cultural factors, but management remains optimistic about long-term growth [39][42] Question: Future pricing opportunities - Management believes there are opportunities for inflationary price increases, but overall pricing remains solid [100][101] Question: Impact of tariffs on guidance - Tariffs are expected to impact costs, with potential adjustments in manufacturing and pricing strategies to mitigate effects [77][104]