Post Earnings Coverage as Cooper’s Quarterly Revenue Grew 11%; EPS Surged 46%

Upcoming AWS Coverage on Integra LifeSciences Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 17, 2017 / Active Wall St. announces its post-earnings coverage on The Cooper Cos., Inc. (NYSE: COO). The Company announced its first quarter fiscal 2017 financial results on March 02, 2017. The Pleasanton, CA-based medical device Company surpassed earnings expectation and also raised the low end of its adjusted earning guidance. Register with us now for your free membership at:

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One of Cooper Cos.’ competitors within the Medical Instruments & Supplies space, Integra LifeSciences Holdings Corp. (NASDAQ: IART), reported on February 23, 2017, its financial results for the fourth quarter and full year ending December 31, 2016. AWS will be initiating a research report on Integra LifeSciences in the coming days.

Today, AWS is promoting its earnings coverage on COO; touching on IART. Get our free coverage by signing up to:

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Earnings Reviewed

For the fiscal first quarter ended January 31, 2017, Cooper’s revenue increased 11% year-over-year to $499.1 million and up 8% pro-forma (defined as constant currency and including acquisitions in both periods). The Company’s revenue numbers missed analysts’ consensus estimates of $503 million.

For Q1 FY17, Cooper reported gross margin of 63% compared with 58% in Q1 FY16. On a non-GAAP basis, gross margin was 63% compared with 61% last year. For Q1 FY17, the Company’s operating margin was 18% compared with 13% in the year earlier same quarter. On a non-GAAP basis, operating margin was 23% for the reported quarter compared to 22% in Q1 FY16.

Cooper’s Q1 FY17 GAAP diluted earnings per share (EPS) totaled $1.53, surging 46% from Q1 FY16. On a non-GAAP basis, the Company’s diluted EPS grew 5% to 1.93, exceeding market estimates of $1.86 per share.

Commenting on the results, Robert S. Weiss, Cooper’s President and Chief Executive Officer said:

“We are very pleased to report a strong first quarter. CooperVision continued gaining market share driven by growth in Biofinity® and daily silicone hydrogel products while CooperSurgical continued its growth driven by fertility. Our business fundamentals remain strong and we remain excited about the future.”

Segment Results

During Q1 FY17, CooperVision generated revenue of $389.3 million, up 7% from last year’s first quarter revenue of $364 million, up 9% in constant currency. The segment’s daily silicone hydrogel lenses grew 49% with Biofinity and Avaira products combined growing 15%, both in constant currency.

On geographical basis, the Americas grew 7%, EMEA grew 7%, and Asia/Pacific posted a very strong growth of 16%, all in constant currency. The segment reported gross margin of 63% compared with 57% in Q1 FY16. On a non-GAAP basis, gross margin was 63% from 61% last year. Gross margin was positively impacted primarily from positive product mix led by Biofinity.

CooperSurgical’s Q1 FY17 revenue totaled $109.8 million, up 29% on a y-o-y basis, driven by organic growth and acquisitions, and up 3% pro-forma Fertility was the highlight posting growth of 83%, or 9% pro-forma. The segment’s gross margin totaled 61% for the reported quarter compared with 63% in the year earlier period. On a non-GAAP basis, gross margin was 62% from 64% last year. Gross margin was negatively impacted primarily by lower margin acquisitions.

Fiscal Year 2017 Guidance

Cooper announced that the revenue guidance for FY17 remains intact with consolidated revenues expected in the range of $2.09 billion to $2.13 billion. This is comprised of $1.62 billion to $1.65 billion at CooperVision, which equates to roughly 6% to 8% constant currency growth, and $470 million to $480 million at CooperSurgical, which equates to roughly 6% to 8% pro-forma growth. The Company raised its non-GAAP EPS for FY17 on the low-end by $0.10 to incorporate its Q1 FY17 performance and improve confidence around the remainder of the year. The new range is now $9.10 to $9.30 based on 49.4 million shares outstanding. Cooper stated that it is focusing on delivering consistent annual performance. This includes expecting over $400 million in free cash flow this year, which supports the Company’s objective of delivering over $2 billion of cumulative free cash flow over the next five years while also targeting operating margins of 28% in 2021.

Cash Flow & Balance Sheet

Cooper’s total debt increased $90.7 million from October 31, 2016, to $1.42 billion, primarily due to the acquisition of Wallace, which was partially offset by operational cash flow generation. Cash provided by operations of $108.4 million was offset by capital expenditures $28.7 million, which resulted in free cash flow of $79.7 million. The Company also recorded a $4.1 million balance sheet adjustment to its fiscal 2016 year-end retained earnings to reflect an increase in the rebate accrual accumulated primarily on activity prior to fiscal 2014.

Stock Performance

Cooper Cos.’ share price finished yesterday’s trading session at $193.73, marginally down 0.49%. A total volume of 294.19 thousand shares exchanged hands. The stock has surged 10.53% and 32.84% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 10.77%. The stock is trading at a PE ratio of 31.92 and has a dividend yield of 0.03%.

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