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Cooper Companies (COO) to Post Q2 Earnings: What's in Store?

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The Cooper Companies, Inc.’s (COO - Free Report) second-quarter fiscal 2022 results are scheduled to release on Jun 2, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 5.2%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 3.6%.

Q2 Estimates

For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $824.8 million, indicating an improvement of 14.6% from the year-ago quarter. The same for earnings stands at $3.45 per share, suggesting a decline of 2.1% from the year-ago reported figure.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both the segments displayed strength in the fiscal first quarter of 2022, and we expect this momentum to have sustained in the fiscal second quarter of 2022.

With respect to the CVI segment, solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals might have contributed to the segment’s performance in the quarter to be reported.

In fact, for fiscal 2022, CVI revenues are projected at $2.22-$2.26 billion (organic growth of7% to 9%). This strength is likely to get reflected in the to-be-reported quarter’s results.

The Cooper Companies, Inc. Price and EPS Surprise

The Cooper Companies, Inc. Price and EPS Surprise

The Cooper Companies, Inc. price-eps-surprise | The Cooper Companies, Inc. Quote

CSI displayed strength in the fiscal first quarter of 2022, with revenues of $225.7 million, up 33% from the year-ago period on a constant currency basis, while 30% on a reported basis. The segment benefited from a strong fertility sub-segment and office and surgical products. This momentum is likely to have continued in the fiscal second quarter as well. For fiscal 2022, CSI revenues are expected at $1.04-$1.07 billion (5% to 7% organic growth). This strength is likely to have favored the to-be-reported quarter performance.

With respect to MiSight's 1-day contact lens, per the fiscal-first quarter 2022 earnings call, the company witnessed revenue growth of 172%. The momentum may have sustained in the fiscal second quarter, courtesy of the excellent progress shown with its key accounts and entry into new pilot programs with retailers and buying groups globally.

Cooper Companies is advancing well through inorganic expansion.

Per the fiscal first-quarter 2022 earnings call, the company announced the pending acquisition of Cook Medical's reproductive health business, which is likely to be a great addition to its surgical franchise.

In November 2021, Cooper Companies inked a deal to acquire Generate Life Sciences as it is a good strategic fit for the company. The buyout will enable it to better serve fertility clinics and Ob/Gyns with a broader suite of products and services.

These developments may have favored the fiscal second-quarter performance.

Cooper Companies has been witnessing higher contact lens demand, driven by the global transition to daily contact lenses by customers of late. The company has been making advancements in customized product offerings, which are likely to have contributed to the fiscal second-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Cooper Companies has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Peer Releases

Some better-ranked stocks in the broader medical space that have announced quarterly results are Bio-Rad Laboratories, Inc. (BIO - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Masimo Corporation (MASI - Free Report) .

Bio-Rad, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $4.94, which beat the Zacks Consensus Estimate by 76.4%. Revenues of $700 million outpaced the consensus mark by 3.3%. You can see the complete list of today's Zacks #1 Rank stocks here.

Bio-Rad has a historical earnings growth rate of 31.2%. BIO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 58.9%.

AMN Healthcare, sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.

AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.

Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.

Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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