Cooper Companies (COO) To Post Q4 Earnings: What's In Store?

The Cooper Companies, Inc.’s (NYSE:COO) fourth-quarter fiscal 2019 results are scheduled to release on Dec 5, after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 2.2%. Further, it has average four-quarter positive earnings surprise of 5.2%.

Let’s take a look at how things are shaping up prior to this announcement.

Fiscal Q4 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $685.7 million, suggesting growth of 5.3% from the year-ago quarter’s reported figure. The same for earnings stands at $3.27 per share, indicating an improvement of 13.9% from the year-ago quarter’s reported figure.

Factors to Influence Fiscal Q4

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI).

The company is likely to have generated higher revenues at CVI in the fiscal fourth quarter, backed by better-than-expected performance across the Americas, Asia-Pacific and EMEA. Further, accelerating growth in both Clariti and MyDay is likely to have contributed to revenues.

In fact, it is encouraging to note that for fiscal 2019, Cooper Companies expects CVI sales of $1,966-$$1,976 million that indicates year-over-year growth of 7-8% on a proforma basis. Consequently, a similar trend is likely to have continued in the to-be-reported quarter.

Additionally, CVI’s Toric and Multifocal lenses, which make Cooper Companies a stalwart in the soft contact lenses market, are likely to have driven fiscal fourth-quarter results.

Management at Cooper Companies anticipates witnessing higher contact lenses demand, owing to the global transition to daily contact lenses by customers. Moreover, the company has made advancements in its customized product offerings, which are likely to have ramped up fiscal fourth-quarter sales.

The company’s CSI segment is likely to report revenue growth in the to-be-reported quarter on the back of strength in PARAGARD and marketed products.

It is encouraging to note that for fiscal 2019, Cooper Companies expects CSI sales of $669-$682 million, expanded from the previous $669-$679 million.

The company is likely to have generated bottom-line growth in the fiscal fourth quarter, primarily driven by its market-leading products and solid operational execution.

It is important to note here that Cooper Companies generates a significant part of its revenues in foreign currencies. Hence, adverse forex can affect the company’s overseas revenues.

Notably, Cooper Companies expects foreign exchange headwinds to have an impact of 62 cents per share on earnings and $66 million on revenues on a year-over-year basis in 2019.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see below.

Earnings ESP: Cooper Companies has an Earnings ESP of +0.74%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Peer Releases

Here are three stocks that reported solid results for this earnings season.

Edwards Lifesciences Corporation (NYSE:EW) delivered fourth-quarter 2019 adjusted EPS of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Fourth-quarter net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%. The company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher Scientific Inc. (NYSE:TMO) delivered fourth-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%. The company carries a Zacks Rank of 2.

ResMed Inc. (NYSE:RMD) reported fourth-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%. The company sports a Zacks Rank #1.

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