Yahoo Finance What's in Store for Cooper Companies (COO) in Q2 Earnings?
The Cooper Companies, Inc.’s COO second-quarter fiscal 2024 results are scheduled to be released on May 30, after the closing bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 7.6%. Its earnings beat estimates in two of the trailing four quarters and met twice, delivering an average surprise of 2.48%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $948.7 million, indicating an 8.1% increase from the year-ago quarter’s level. The same for earnings is pinned at 83 cents per share, implying a 7.8% 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 second quarter of fiscal 2024.
CVI displayed strength in the first quarter of fiscal 2024, with revenues of $621.5 million. The top line increased 7% year over year on a constant currency basis and 6% 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 9% in calendar 2023, CooperVision's market share rose to 11%. This strength is likely to be reflected 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 second quarter, coupled with the rising adoption of Clariti. Myopia management should have brought in additional revenues, with MiSight lenses acting as the key driver. However, Ortho K lens sales are likely to have been weaker, which might have offset MiSight growth.
The segment’s revenues for fiscal 2024 are projected to be in the range of $2.573-$2.604 billion (organic growth of 8-9%). This momentum is likely to be reflected in the upcoming quarterly results.
CSI also displayed strength in the first quarter of fiscal 2024, with revenues of $310.1 million. The top line increased 12% year over year on a constant currency basis and 13% 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. Products added with Cook Medical’s acquisition (last November) should bring in additional revenues. The company’s use of artificial intelligence for identifying the best embryos to transfer during an IVF cycle is likely to have benefited it during the quarter.
For fiscal 2024, CSI revenues are expected to be in the range of $1.274-$1.293 billion (5-7% organic growth). This strength is likely to be reflected in the upcoming quarterly results.
CSI displayed strength in the first quarter of fiscal 2024, with revenues of $304.2 million. The top line increased 7% 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.
For fiscal 2024, CSI revenues are expected to be in the range of $1.261-$1.283 billion (4-6% organic growth). This strength is likely to be reflected in the upcoming quarterly results.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PDCO 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. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
The Cooper Companies, Inc. Price
The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote
Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
Tenet Healthcare THC has an Earnings ESP of +1.77% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
THC has an earnings growth rate of 20.6% for fiscal 2024. It delivered a trailing four-quarter average earnings surprise of 56.5%.
Universal Health Services UHS has an Earnings ESP of +0.87% and a Zacks Rank of 3 at present.
The stock has an earnings growth rate of 29.4% for fiscal 2024. UHS’ earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 8.12%.
Brainsway BWAY has an Earnings ESP of +100.00% and a Zacks Rank #3 at present. BWAY has an earnings growth rate of 107.7% for fiscal 2024.
BWAY’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 74.49%.
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Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
Brainsway Ltd. Sponsored ADR (BWAY) : Free Stock Analysis Report
