Cooper Companies Inc (NYSE:COO) stock fell 2.56% (As on June 3, 11:41:02 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 22. CooperVision (CVI) revenue was up 6% to $553.8 million, and CooperSurgical (CSI) revenue was up 40% to $276.0 million. Net debt outstanding at quarter end was $2.86 billion (total debt excluding unamortized debt issuance costs less cash and cash equivalents) down $124.8 million from last quarter. Adjusted leverage ratio (net debt over adjusted EBITDA) was 2.59x.

Cash provided by operations of $131.8 million offset by capital expenditures of $43.4 million resulted in free cash flow of $88.4 million. Net debt decreased by more than free cash flow due to the positive cash impact from closing the SightGlass Vision joint venture.

Meanwhile, in March 2022, the Company closed its joint venture agreement with EssilorLuxottica for SightGlass Vision. This collaboration of two of the world’s leading vision care companies accelerates the commercialization of its novel spectacle lens technologies to expand the myopia management category. In April 2022, the Company made the decision to exit its contact lens solutions business. It is anticipated this business will continue operating through the end of the fiscal year.

COO in the second quarter of FY 22 has reported the adjusted earnings per share of $3.24, missing the analysts’ estimates for the adjusted earnings per share of $3.43, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 15.3 percent to $829.8 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of $824.78 million. On a non-GAAP basis, operating margin was 24%, down from 27% last year driven primarily by currency.

Fiscal 2022 total revenue is expected to be in the range of $3,280 – $3,312 million (organic growth of 9% to 10%), CVI revenue is expected to be in the range of $2,225 – $2,247 million (organic growth of 10% to 11%) and CSI revenue is expected to be in the range of $1,055 – $1,065 million (organic growth of 6% to 7%). Fiscal 2022 non-GAAP diluted EPS is expected to be in the range of $13.09 – $13.29 (assumes a 50 basis point rate increase in both June and July and a 25 basis point rate increase in September).