The Cooper Companies 2025 Q2 Earnings Misses Targets as Net Income Falls 1.3%

The Cooper Companies (COO) reported its fiscal 2025 Q2 earnings on May 29th, 2025. The company posted total revenue of $1 billion, a 6.3% increase year-over-year, surpassing analysts' expectations of $995.12 million. However, its earnings per share (EPS) of $0.44 fell short of the anticipated $0.93, indicating a miss in the earnings expectations. The company raised its FY 2025 EPS guidance to $4.05-$4.11, suggesting optimism for future performance despite current challenges.

Revenue
The Cooper Companies achieved a total revenue of $1 billion in Q2 2025, marking a 6.3% increase from $942.60 million in the previous year. CooperVision led the revenue growth with $669.60 million in sales, contributing significantly to the overall figure. Meanwhile, CooperSurgical generated $332.70 million, further bolstering the company's financial performance for the quarter.

Earnings/Net Income
The Cooper Companies experienced a decline in earnings per share (EPS) to $0.44 in Q2 2025, down from $0.45 in Q2 2024. Concurrently, net income decreased by 1.3% to $87.70 million compared to $88.90 million in the previous year. The decline in EPS indicates challenges in maintaining profitability.

Price Action
The stock price of The Cooper Companies edged down 0.97% during the latest trading day. Its value increased by 0.74% over the most recent full trading week but saw a 2.31% decrease month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing COO shares following a revenue beat and holding them for 30 days resulted in a 7.14% return, which was 26.93% below the benchmark. The strategy exhibited high risk with a maximum drawdown of -36.10% and a Sharpe ratio of 0.16, indicating moderate returns. These metrics highlight the volatility and risk associated with holding the stock after earnings announcements, as it underperformed compared to standard benchmarks.

CEO Commentary
Al White, President and Chief Executive Officer, highlighted a solid quarter marked by a 7% organic revenue growth. This growth was fueled by significant advances in daily silicone hydrogel lenses and robust performance in the office and surgical portfolio. He acknowledged global complexities but emphasized strategic initiatives like market share gains and product launches. White expressed optimism about the MyDay and MySight products due to strong fitting activity and anticipated revenue growth in fiscal Q4. However, he remained cautious about lower organic growth expectations in the fertility market due to economic pressures.

Guidance
The Cooper Companies has tightened its revenue guidance, forecasting consolidated revenues between $4.11 billion and $4.15 billion, representing an organic growth rate of 5% to 6%. CooperVision is projected to achieve revenues from $2.76 billion to $2.79 billion with 6% to 7% organic growth. CooperSurgical anticipates revenue between $1.35 billion and $1.36 billion, with organic growth expected at 3.5% to 4.5%. Non-GAAP EPS guidance has been raised to $4.05 to $4.11, indicating year-over-year growth of approximately 10% to 11.5%.

Additional News
During the first quarter, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in The Cooper Companies by 48.9%, acquiring an additional 7,363 shares. This move reflects institutional confidence in the company’s growth prospects. Additionally, CooperCompanies repurchased $40.6 million worth of common stock under its existing share repurchase program, buying approximately 537.2 thousand shares at an average price of $75.60. The program retains $215.8 million of remaining availability, indicating continued commitment to enhancing shareholder value through buybacks.