Good trailing results and encouraging guidance made a fine impression on the market.
One trading session after unveiling its latest set of quarterly results, Cooper Companies (COO 11.84%) booked a double-digit gain in share price on Thursday. That matched the double-digit increase in profitability for the specialty medical supply company, which saw its stock rise by almost 12%. With this performance, Cooper crushed the flat-lining S&P 500 index in Thursday’s session.
Improvements on both the top and bottom lines
For its fiscal third quarter, Cooper’s revenue totaled slightly over $1 billion, which was a sturdy (8%) improvement over the same period of fiscal 2023. Most of that take came from the company’s traditional contact lens supply business; this enjoyed a 7% rise in sales to nearly $676 million. The remainder came from its CooperSurgical unit’s $327 million. This figure represented a 9% year-over-year increase.
Non-GAAP (adjusted) net income, meanwhile, landed at just below $192 million, or $0.96 per share. Again, this bettered the year-ago period, as it was 15% higher.
Analyst estimates for Q3 were not immediately available.
Like other medical device and supply companies, Cooper is well poised to continue taking advantage of the “graying” of America. The citizenry of this country is getting older as a whole as medical advancements and a trend toward healthy lifestyle and diet choices persists. Older Americans’ share of the total population is forecast by many observers to increase in the coming decades.
A bright future in view
Cooper also proffered guidance for the entirety of its current fiscal year (2024). Management is expecting that total revenue will be slightly more than $3.89 billion to a bit over $3.91 billion. If realized, this would mean growth of at least 8% over the 2023 figure. Non-GAAP earnings should come in at $3.64 to $3.67 per share.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
