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A month has gone by since the last earnings report for Cooper Cos. (COO). Shares have lost about 11.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cooper Cos. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cooper Companies Q4 Earnings Miss, Gains From Core CVI
Cooper Companies reported fourth-quarter fiscal 2018 earnings of $2.87 per share, missing the Zacks Consensus Estimate by 3%. However, earnings increased 8.3% on a year-over-year basis.
The company reported revenues worth $651.5 million, surpassing the Zacks Consensus Estimate of $645.8 million. On a year-over-year basis, revenues improved 16%.
Q4 Segment Details
CVI
This segment garnered revenues worth $480.6 million, up 10% on a pro forma basis and 9% year over year. Per management, the segment saw a noticeable uptick in the daily silicone hydrogel lenses, showing pro forma growth of 50% driven by accelerating growth in both Clariti and MyDay.
Toric (31% of CVI) revenues totaled $149.2 million, up 11% on a pro forma basis and 10% year over year. Multifocal (10%) generated revenues worth $47.8 million, up 7% at pro forma and 6% year over year.
Single-use sphere (29%) posted revenues worth $141.7 million, which shot up 21% at pro forma and 19% from a year ago. Non single-use sphere (30%) revenues came in at $141.9 million, up 2% at pro forma and 2% from a year ago.
Geographically, the segment saw an improvement in U.S. revenues (39%), up 8% at pro forma and 8% year over year to $185.8 million. EMEA revenues (38%) were $183.8 million, up 9% at pro forma and 6% from the prior-year quarter. Per management, overseas growth was driven by clariti and MyDay strength and strong results from Biofinity and Avaira Vitality.
Asia Pacific sales (23%) rose 19% at pro forma and 19% year over year to $111 million. Per management, APAC posted strong results buoyed by Clariti along with strength in MyDay and Biofinity.
CSI
This segment posted revenues of $170.9 million, up 5% at pro forma and 40% year over year. Per management, growth was led by a 20% rise in PARAGARD.
Sub-segment Office and Surgical products (64% of CSI) accounted for $110 million, up 12% at pro forma and a whopping 97% on a year-over-year basis. Fertility (36%) posted sales worth $60.9 million, down 9% year over year and 6% at pro forma.
Margin Analysis
In the fiscal fourth quarter, gross profit totaled $430 million, up 21.7% year over year. Per management, adjusted gross margin was 66%, flat with the year-ago quarter level. As a percentage of revenues, adjusted gross margin at the CSI segment was 73%, up from 60% a year ago. Per management, the upside was driven by the addition of PARAGARD and improvement in product mix. As a percentage of revenues, adjusted gross margin at the CVI segment was 64% compared with 68% in the year-ago quarter.