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Valued at a market cap of $19.5 billion, The Cooper Companies, Inc. (COO) is a specialty medical device company that primarily develops, manufactures, and markets contact lens wearers. The San Ramon, California-based company also sells a variety of medical devices and surgical instruments that are primarily utilized by gynecologists and obstetricians. It is expected to announce its fiscal Q1 earnings results after the market closes on Thursday, Mar. 6.
Ahead of this event, analysts project the medical device company to report a profit of $0.92 per share, up 8.2% from $0.85 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q4 2024, COO’s EPS of $1.04 outpaced the forecasted figure by a notable margin of 4%.
For fiscal 2025, analysts expect COO to report an EPS of $3.98, up 7.9% from a profit of $3.69 in fiscal 2024.
Shares of The Cooper Companies have gained nearly 6.8% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 22.9% return but slightly outpacing the Health Care Select Sector SPDR Fund’s (XLV) almost 6% rise over the same time frame.
Shares of COO plunged 4.4% after its Q4 earnings release on Dec. 5 as the company delivered a mixed performance. Its adjusted EPS of $1.04 increased 19.5% from the year-ago quarter and outpaced the Wall Street estimates by 4%. However, its revenue of $1 billion grew 10% year-over-year but marginally missed the consensus expectations.
The company saw a decline in PARAGUARD sales due to the rise in competition from other birth control options and also experienced unexpected softness in torics and multifocals demand. Moreover, the U.S. inventory contraction in October adversely impacted myopia management sales during the quarter, a trend that is likely to continue into the first quarter of fiscal 2025, further dampening investor confidence.
Wall Street analysts are strongly optimistic about COO’s stock, with a "Strong Buy" rating overall. Among 15 analysts covering the stock, 11 recommend "Strong Buy," and four suggest “Hold.”
The average price target for COO is $116.08, which indicates a 16.7% potential upside from the current levels.
