Cooper Posts Better-Than-Expected Q1 Results

Cooper Companies (COO) has delivered upbeat results for the first quarter of the Fiscal Year 2022, as both revenue and earnings surpassed expectations. The global medical device company operates through two business units, CooperVision and CooperSurgical.

Revenue increased 16% year-over-year to $787.2 million and surpassed consensus estimates of $744.3 million. The upside can be attributed to the growth witnessed in the revenues of CooperVision (up 11%) and CooperSurgical (up 30%).

Further, adjusted earnings per share (EPS) stood at $3.24, up 2% year-over-year and above analysts’ estimates of $3.10 per share. Adjusted operating margin was down 2% against the same quarter last year to $25% due to currency and higher investing.

Cooper’s President and CEO, Al White, said, “Cooper reported a strong start to fiscal 2022 with CooperVision gaining share led by daily silicone hydrogel and myopia management products, and CooperSurgical posting solid growth driven by fertility. We remain focused on executing on our long-term strategic initiatives along with integrating our Generate Life Sciences acquisition, and closing our pending Cook Medical reproductive health acquisition.”

Guidance

Total revenue in Fiscal Year 2022 is expected to be in the range of $3,261 million to $3,329 million, reflecting 6.5% to 8.5% organic growth. Also, adjusted EPS is projected to be between $13.70 and $14.20 per share.

Price Target

Consensus among analysts is a Hold based on 1 Buy and 3 Holds. Cooper stock price prediction of $459 implies 10% upside potential to current levels. Shares have gained 12.3% over the past year.

Positive News Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Cooper, as 12.8% of investors on TipRanks increased their exposure to COO stock over the past 30 days.

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