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The Cooper Companies (COO), headquartered in San Ramon, California, develops, manufactures, and markets contact lens wearers. Valued at $18.56 billion by market cap, the company’s products include contact lenses for the vision care market and diagnostic products, surgical instruments, and accessories for gynecologists and obstetricians. The leading medical device company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Aug. 28.
Ahead of the event, analysts expect COO to report a profit of $0.91 per share on a diluted basis, up 8.3% from $0.84 per share in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters.
For the full year, analysts expect COO to report EPS of $3.57, up 11.6% from $3.20 in fiscal 2023.
COO stock has underperformed the S&P 500’s ($SPX) 14.8% gains on a YTD basis, with shares down 0.9% during this period. Similarly, it underperformed the S&P 500 Healthcare Sector SPDR’s (XLV) 9.7% gains over the same time frame.
On Jul. 16, COO shares closed up more than 1% after financial services firm Jefferies upgraded the stock to Buy from Hold with a price target of $115.
On May 30, COO reported its Q2 results. Its adjusted EPS stood at $0.85, up 10.4% year over year. Its net sales increased 7.4% from the year-ago quarter to $942.60 million. The company raised its full-year outlook and expects its revenue to be between $3.86 billion and $3.91 billion, with an organic growth of 7.5% to 8.5%.
COO’s CVI revenue is expected to be between $2.59 billion and $2.61 billion, with 8.5% to 9.5% organic growth. Meanwhile, its CSI revenue is expected to be between $1.27 billion and $1.29 billion, with 5% to 7% organic growth. Moreover, the company’s fiscal 2024 adjusted EPS is expected to be between $3.54 and $3.60. COO shares closed down marginally on the day the results were released.
Analysts’ consensus opinion on COO stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 11 advise a “Strong Buy” rating, and four give a “Hold.” The average analyst price target for COO is $112.75, indicating a potential upside of 21% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
