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What's in Store for Cooper Companies (COO) in Q3 Earnings?
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The Cooper Companies, Inc.’s (COO - Free Report) third-quarter fiscal 2024 results are scheduled to be released on Aug 28, after the closing bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.41%. Its earnings beat estimates in two of the trailing four quarters and met twice, delivering an average surprise of 2.50%.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $997.2 million, indicating a 7.2% increase from the year-ago quarter’s level. The consensus mark for earnings is pinned at 91 cents per share, implying an 8.3% improvement from the prior-year period’s reported number.
Factors to Note
Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both these segments displayed strength in the past few quarters. This trend is likely to have continued in the third quarter of fiscal 2024.
CVI displayed strength in the second quarter of fiscal 2024, with revenues of $635.9 million. The top line increased 10% year over year on a constant currency basis and 8% on a reported basis.
Cooper Companies has been witnessing higher demand for contact lenses, driven by the recent global transition to daily contact lenses by customers. While the contact lens market grew 5% in the first quarter of fiscal 2024, CooperVision's market share rose 7%. The company has been growing faster than market for the past few quarters. This strength is likely to support an accelerated growth rate in the upcoming quarterly results.
During the previous reported quarter, the company witnessed a significant increase in revenues with respect to MyDay daily silicone hydrogel lenses. The momentum is likely to have continued in the fiscal third quarter, coupled with the rising adoption of Clariti. Myopia management should have brought in additional revenues, with MiSight lenses acting as the key driver.
The segment’s revenues for fiscal 2024 are projected to be in the range of $2.591-$2.613 billion (organic growth of 8.5-9.5%). This momentum is likely to be reflected in the upcoming quarterly results.
CSI also displayed strength in the second quarter of fiscal 2024, with revenues of $306.7 million. The top line increased 8% year over year on a constant currency basis and 6% on a reported basis.
The segment benefited from fertility as well as surgical products. This trend is likely to have continued in the quarter to be reported. Sales are likely to have been driven by robust demand for the PARAGARD device. Continued demand for medical devices across its minimally invasive gynecological surgical portfolio, and labor and delivery portfolio, coupled with the rising demand for stem cell storage, is likely to have boosted growth for office and surgical products during the fiscal third quarter.
Strong demand for fertility products is also likely to have continued in the quarter. However, medical device sales are expected to have been hurt by shipping interruptions at the company’s U.S. distribution center due to a systems upgrade last quarter.
For fiscal 2024, CSI revenues are expected to be in the range of $1.272-$1.293 billion (5-7% organic growth). This strength is likely to be reflected in the upcoming quarterly results.
Earnings Beat Likely
Our proven model predicts an earnings beat for Cooper Companies this time around. 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.
Earnings ESP: COO has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
The stock has an estimated earnings growth rate of 11.5% for 2024. RPID’s earnings missed estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 2.20%.
Cellectar Biosciences (CLRB - Free Report) has an Earnings ESP of +23.33% and a Zacks Rank of 3 at present.
CLRB has an estimated earnings growth rate of 39.4% for 2024. The company’s earnings met estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 21.01%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. MMSI has an estimated earnings growth rate of 10% for 2024.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.39%.
Image: Bigstock
What's in Store for Cooper Companies (COO) in Q3 Earnings?
The Cooper Companies, Inc.’s (COO - Free Report) third-quarter fiscal 2024 results are scheduled to be released on Aug 28, after the closing bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.41%. Its earnings beat estimates in two of the trailing four quarters and met twice, delivering an average surprise of 2.50%.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $997.2 million, indicating a 7.2% increase from the year-ago quarter’s level. The consensus mark for earnings is pinned at 91 cents per share, implying an 8.3% improvement from the prior-year period’s reported number.
Factors to Note
Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both these segments displayed strength in the past few quarters. This trend is likely to have continued in the third quarter of fiscal 2024.
CVI displayed strength in the second quarter of fiscal 2024, with revenues of $635.9 million. The top line increased 10% year over year on a constant currency basis and 8% on a reported basis.
Cooper Companies has been witnessing higher demand for contact lenses, driven by the recent global transition to daily contact lenses by customers. While the contact lens market grew 5% in the first quarter of fiscal 2024, CooperVision's market share rose 7%. The company has been growing faster than market for the past few quarters. This strength is likely to support an accelerated growth rate in the upcoming quarterly results.
During the previous reported quarter, the company witnessed a significant increase in revenues with respect to MyDay daily silicone hydrogel lenses. The momentum is likely to have continued in the fiscal third quarter, coupled with the rising adoption of Clariti. Myopia management should have brought in additional revenues, with MiSight lenses acting as the key driver.
The segment’s revenues for fiscal 2024 are projected to be in the range of $2.591-$2.613 billion (organic growth of 8.5-9.5%). This momentum is likely to be reflected in the upcoming quarterly results.
The Cooper Companies, Inc. Price and EPS Surprise
The Cooper Companies, Inc. price-eps-surprise | The Cooper Companies, Inc. Quote
CSI also displayed strength in the second quarter of fiscal 2024, with revenues of $306.7 million. The top line increased 8% year over year on a constant currency basis and 6% on a reported basis.
The segment benefited from fertility as well as surgical products. This trend is likely to have continued in the quarter to be reported. Sales are likely to have been driven by robust demand for the PARAGARD device. Continued demand for medical devices across its minimally invasive gynecological surgical portfolio, and labor and delivery portfolio, coupled with the rising demand for stem cell storage, is likely to have boosted growth for office and surgical products during the fiscal third quarter.
Strong demand for fertility products is also likely to have continued in the quarter. However, medical device sales are expected to have been hurt by shipping interruptions at the company’s U.S. distribution center due to a systems upgrade last quarter.
For fiscal 2024, CSI revenues are expected to be in the range of $1.272-$1.293 billion (5-7% organic growth). This strength is likely to be reflected in the upcoming quarterly results.
Earnings Beat Likely
Our proven model predicts an earnings beat for Cooper Companies this time around. 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.
Earnings ESP: COO has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Rapid Micro Biosystems (RPID - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has an estimated earnings growth rate of 11.5% for 2024. RPID’s earnings missed estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 2.20%.
Cellectar Biosciences (CLRB - Free Report) has an Earnings ESP of +23.33% and a Zacks Rank of 3 at present.
CLRB has an estimated earnings growth rate of 39.4% for 2024. The company’s earnings met estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 21.01%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. MMSI has an estimated earnings growth rate of 10% for 2024.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.39%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.