On May 30, 2024, The Cooper Companies Inc (COO, Financial) released its 8-K filing detailing the financial results for its fiscal second quarter ended April 30, 2024. The Cooper Companies, a leading global medical device company, operates through two segments: CooperVision and CooperSurgical. CooperVision specializes in contact lenses, while CooperSurgical focuses on reproductive care, fertility, and women's health.
Performance Overview
The Cooper Companies Inc (COO, Financial) reported a 7% year-over-year increase in revenue to $942.6 million, slightly below the analyst estimate of $948.06 million. However, the company exceeded earnings expectations with a GAAP diluted EPS of $0.44, up 122% from the previous year, and a non-GAAP diluted EPS of $0.85, surpassing the estimated $0.54.
Segment Performance
CooperVision (CVI) reported revenue of $635.9 million, an 8% increase from the previous year, driven by strong performance in its silicone hydrogel lenses portfolio. CooperSurgical (CSI) posted a 6% increase in revenue to $306.7 million, despite facing challenges with a system upgrade in its US distribution center.
Financial Achievements
The company's gross margin improved to 67% from 66% in the previous year, while the operating margin increased to 17% from 11%. On a non-GAAP basis, the operating margin remained steady at 24%. The company also reported a free cash flow of $36.9 million, with cash provided by operations amounting to $111.0 million, offset by capital expenditures of $74.1 million.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $942.6 million | $882.1 million |
| Gross Margin | 67% | 66% |
| Operating Margin | 17% | 11% |
| GAAP Diluted EPS | $0.44 | $0.20 |
| Non-GAAP Diluted EPS | $0.85 | $0.77 |
Balance Sheet and Cash Flow
The Cooper Companies Inc (COO, Financial) reported total debt of $2.7 billion, excluding unamortized debt issuance costs, and cash and cash equivalents of $112.4 million. The company generated $111.0 million in cash from operations and invested $74.1 million in capital expenditures, resulting in a free cash flow of $36.9 million.
Commentary and Future Outlook
"I'm pleased to report record quarterly revenues and great operational progress throughout the organization. CooperVision returned to double-digit growth driven by our portfolio of leading silicone hydrogel lenses, and CooperSurgical posted a solid quarter despite some unexpected challenges with a system upgrade in our US distribution center. As we move forward, we're increasing our revenue and earnings guidance by incorporating this past quarter and the momentum we're seeing in the market." - Al White, President and CEO
Fiscal Year 2024 Guidance
The company raised its fiscal year 2024 guidance, projecting total revenue between $3,863 million and $3,905 million, with organic growth of 7.5% to 8.5%. CooperVision revenue is expected to range from $2,591 million to $2,613 million, and CooperSurgical revenue is anticipated to be between $1,272 million and $1,292 million. Non-GAAP diluted EPS is forecasted to be between $3.54 and $3.60.
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Explore the complete 8-K earnings release (here) from The Cooper Companies Inc for further details.
