San Ramon, California-based The Cooper Companies, Inc. (COO) is a specialty medical device company that operates through CooperVision and CooperSurgical segments. CooperVision focuses on the manufacturing and sale of contact lenses, while CooperSurgical provides a variety of medical devices and surgical instruments. With a market cap of $21.5 billion, Cooper’s operations span the Americas, Indo-Pacific, Europe, and internationally. COO is set to announce its Q4 earnings on Thursday, Dec. 5.
Ahead of the event, analysts expect Cooper to report a profit of $1 per share, up 14.9% from $0.87 per share reported in the year-ago quarter. The company has matched or surpassed Wall Street’s earnings estimates in the past four quarters. Its adjusted EPS for the last reported quarter grew 14.3% year-over-year to $0.96, exceeding the consensus estimates by 5.5%.
For fiscal 2024, analysts expect Cooper to report an adjusted EPS of $3.65, up 14.1% from $3.20 in fiscal 2023.
COO stock is up nearly 14% in 2024, lagging behind the S&P 500 Index’s ($SPX) 21.8% gains over the same time frame. However, the stock outpaced the Health Care Select Sector SPDR Fund’s (XLV) nearly 9% returns during the same time frame.
The Cooper Companies’ stock prices surged 11.8% following the release of its better-than-expected Q3 earnings results on Aug. 28. The company reported a robust 7.8% year-over-year growth in net sales, reaching $1 billion. On a constant currency basis, Cooper’s net sales grew around 10%, primarily driven by CooperVision’s 13% sales growth in the Americas region to $279.8 million and CooperSurgical’s 11% sales growth from Office and surgical category, reaching $197.9 million. Additionally, the company's improved cost efficiency led to a 127-basis points expansion in net margin to 10.4% and a 22.7% increase in net income to $104.7 million, with raised full-year guidance adding to investor optimism.
The consensus opinion on COO stock is bullish, with an overall “Strong Buy” rating. Out of the 15 analysts covering the stock, 11 recommend a “Strong Buy” and four advise a “Hold” rating. The mean price target of $117.46 suggests a potential upside of just 8.9% from current price levels.
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