Cooper Companies Inc (NYSE:COO) stock rose 3.52% (As on Dec 3, 11:50:00 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21. On a non-GAAP basis, gross margin was 67%, down from 68% last year driven primarily by currency. On a non-GAAP basis, operating margin was 25%, down from 27% last year driven primarily by investment activity. Interest expense was $5.0 million compared with $6.7 million in last year’s fourth quarter driven by lower average debt levels. Cash provided by operations $174.5 million offset by capital expenditures $65.0 million resulted in free cash flow of $109.5 million. Net debt outstanding at quarter end was $1,383.1 million (total debt of $1,479.0 million less quarter-end cash and cash equivalents of $95.9 million). Adjusted leverage ratio (net debt over adjusted EBITDA) of 1.4x. Cash provided by operations $738.6 million offset by capital expenditures of $214.4 million resulted in free cash flow of $524.2 million.

COO in the fourth quarter of FY 21 has reported the adjusted earnings per share of $3.28, beating the analysts’ estimates for the adjusted earnings per share of $3.37, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11 percent to $759.1 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue by 1.52%. Fourth Quarter CooperVision (CVI) Revenue was $564.8 million, up 12% from last year’s fourth quarter, up 11% in constant currency.

For fiscal year 2022 the company expects total revenue to be in the range of $3,032 – $3,090 million (up 6% to 8% in constant currency), CVI revenue is expected to be in the range of $2,225 – $2,267 million (up 6% to 8% in constant currency), CSI revenue is expected to be in the range of $807 – $823 million (up 6% to 8% in constant currency) and Fiscal 2022 non-GAAP diluted earnings per share is expected to be in the range of $13.60 – $14.00 (up 9.5% to 12.5% in constant currency).

Meanwhile, COO has signed a definitive purchase agreement to acquire Generate Life Sciences, a privately held leading provider of donor egg and sperm for fertility treatments, fertility cryopreservation services and newborn stem cell storage (cord blood & cord tissue). Cooper will pay approximately $1.6 billion to acquire Generate Life Sciences. The transaction is anticipated to close in Cooper’s first fiscal quarter of 2022.