CooperCompanies Q3 EPS Exceeds Expectations with Strong Performance in Contact Lens and Fertility Markets

CooperCompanies reported Q3 adjusted EPS that beat estimates. The company operates in two business units: CooperVision and CooperSurgical. CooperVision is involved in the contact lens industry, while CooperSurgical offers fertility products and services, medical devices, cryostorage, and contraception. Key products include MyDay daily disposable, INSORB, Lone Star, and the Doppler Blood Flow Monitor.

Cooper Companies Inc. (COO) reported its third-quarter fiscal 2025 adjusted EPS, which beat analysts' estimates. The company operates in two business units: CooperVision (CVI) and CooperSurgical (CSI). CVI is involved in the contact lens industry, while CSI offers fertility products and services, medical devices, cryostorage, and contraception.

Key Highlights

CooperVision (CVI)

CVI, the company's contact lens segment, is expected to benefit from rising demand for contact lenses and pricing improvements. The segment's strong performance is driven by the robust demand for premium brands such as MyDay and Clarity. The company anticipates segment sales to grow 6-7% in fiscal 2025, with organic growth projected at 6.5%. The operating income for this segment is expected to grow 11.7% to $192.9 million [1].

CooperSurgical (CSI)

The CSI segment, which includes fertility products and services, medical devices, cryostorage, and contraception, saw quarterly sales numbers reflect strength in minimally invasive gynecological surgical devices and labor and delivery products. However, the weakness in the fertility business, particularly due to declining fertility cycles in the Asia-Pacific market, may have dampened growth. The company anticipates segment sales to grow 3.5-4.5% organically in fiscal 2025, with organic growth projected at 2.7%. The segmental operating income is projected to decline 14.4% to $35.4 million [1].

Earnings Beat and Outlook

COO's proven model predicts an earnings beat for the company this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #2 increases the chances of an earnings beat, which is the case here. The Earnings ESP represents the difference between the Most Accurate Estimate ($1.08 per share) and the Zacks Consensus Estimate ($1.07), with a difference of +1.41% [1].

Other Medical Stocks

Investors may also want to consider other medical stocks that have the right combination of elements to come up with an earnings beat this reporting cycle. Cardinal Health (CAH), McKesson (MCK), and Dentsply Sirona (XRAY) are among the stocks worth considering [1].

References

[1] https://www.tradingview.com/news/zacks:b2a60eebb094b:0-cooper-companies-likely-to-beat-q3-earnings-estimate-on-lens-demand/