On Friday, Oppenheimer maintained a Perform rating on Cooper Companies (NASDAQ:COO) and raised its price target to $100 from $90 for the shares. The adjustment reflects the company's first-quarter sales, which surpassed expectations.
Cooper Companies reported sales of $931.6 million, an 8% organic increase that exceeded both the firm's and the Street's estimates of approximately $923.6 million and $916 million, respectively. The outperformance was attributed to the Office/Surgical segment, including a significant contribution from the Cook acquisition.
The company's MyDay daily silicone hydrogel (SiHy) lenses led the growth within the CooperVision (CVI) segment, with ongoing capacity expansion efforts meeting strong demand. However, the myopia management portfolio experienced a slight dip due to a weaker performance in China's Ortho-K market. Cooper Companies also reported earnings per share (EPS) of $0.85, which beat the estimated $0.79, adjusted for the February 16 4:1 stock split, helped by a higher gross margin.
For the fiscal year 2024, Cooper Companies raised its sales guidance to a range of 7-8% organic growth, up from the previous 6-8%. This increase is supported by growth in both the CVI and CooperSurgical (CSI) segments. Notably, price increases within CVI have remained above historical levels, with an increase already implemented in the first quarter. The CSI segment continued to see double-digit growth in its Fertility business.
Regarding regulatory milestones, the FDA approval for SightGlass, a product developed in partnership with Essilor, is now expected in the second half of 2025 as both companies continue to work with the FDA. This news comes as Cooper Companies continues to capitalize on its recent acquisitions and product expansions, positioning itself for sustained growth in the healthcare and vision markets.
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