Cooper Companies Inc (NASDAQ:COO) stock fell 7.44% (As on March 7, 11:20:44 AM UTC-4, Source: Google Finance) after the company missed the topline expectations for the first quarter of FY25, due to lower-than-expected demand for its contact lenses. CooperVision, the company’s contact lens division, reported quarterly sales of $646.1 million, missing analysts’ average estimate of $651.3 million, according to data compiled by LSEG. Sales of the company’s surgical division, which provides a range of fertility and women’s care devices, rose 3% to $318.6 million in the quarter but remained below estimates of $326.1 million. The results contrast with those of peer Alcon, which last month forecast sales in line with expectations after reporting higher fourth-quarter revenue underpinned by its surgical division. In January, Cooper said it had softer sales for its products in the first couple of weeks of November, caused by inventory destocking.

COO in the first quarter of FY25 has reported the adjusted earnings per share of 92 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 92 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4 percent to $964.7 million in the first quarter of FY25, missing the analysts’ estimates for revenue by 1.7% Gross margin of 68% compared with 67% in last year’s first quarter driven by efficiency gains and mix. On a non-GAAP basis, gross margin was 69%, up from 67% last year. Operating margin of 19% compared with 16% in last year’s first quarter driven by stronger gross margins and targeted G&A expense leverage. On a non-GAAP basis, operating margin was 25%, up from 24% last year. On a non-GAAP basis, interest expense was $25.3 million, down from $28.6 million. Cash provided by operations of $190.6 million offset by capital expenditures of $89.4 million resulted in free cash flow of $101.2 million.

For the fiscal year 2025, adjusted earnings per share is expected to be $3.94 to $4.02, raised from previous guidance of $3.92 to $4.02. The company continues to expect fiscal 2025 total revenue of $4,080 million to $4,158 million, and organic growth of 6% to 8%. CVI revenue is expected to be $2,733 million to $2,786 million and CSI revenue of $1,347 million to $1,372 million.