Cooper Companies Inc (NYSE: COO) stock rose over 1.5% on 4th June, 2021 (as of 11:28:51 UTC-4 · USD; Source: Google finance) as the company posted better than expected results for the second quarter of FY 21.
CooperVision (CVI) revenue rose up by 30% to $522.6 million, and CooperSurgical (CSI) revenue rose up by 60% to $196.9 million in the second quarter of FY 21. The company’s businesses have rebounded nicely from Covid lows on the back of success with daily silicone hydrogel lenses and myopia management leading CooperVision, and fertility and PARAGARD leading CooperSurgical. Net debt outstanding at end of the quarter was $1,631.6 million (total debt of $1,737.5 million less quarter-end cash and cash equivalents of $105.9 million). Adjusted leverage ratio (net debt over adjusted EBITDA) was of 1.78x. The cash provided by operations was of $192.6 million offset by capital expenditures of $49.9 million that resulted in free cash flow of $142.7 million for the second quarter.
COO in the second quarter of FY 21 has reported the adjusted earnings per share of $3.38, beating the analysts’ estimates for the adjusted earnings per share of $3.12, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 37 percent to $719.5 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $690.5 million. On a non-GAAP basis, the company posted operating margin of 27%, up from 17% last year driven by higher gross margin and operating expense leverage. On a non-GAAP basis, the company posted gross margin of 68%, up from 66% last year mainly driven by favorable product mix and currency. Interest expense was of $6.1 million for the second quarter compared to $12.8 million in last year’s second quarter driven by lower interest rates and lower average debt levels.
The Cooper Companies expects full-year earnings to be in the range of $13.20 to $13.40 per share, with revenue expected to be in the range of $2.86 billion to $2.89 billion. The analysts had forecasted FY2021 Earnings per Share to be $13.04 & Revenue to be $2.83 Billion, as per Refinitiv Ibes Data. For fiscal 2021, the company expects CVI revenue to be in the range of $2,110 – $2,130 million (11% to 12% constant currency) and CSI revenue to be in the range of $745 – $755 million (25% to 27% constant currency).
Meanwhile, the company has recently acquired obp Medical Corporation, which is a U.S. based medical device company that develops and markets differentiated products including single-use vaginal speculums with integrated LED illumination. The acquisition price is about $60 million, and the products being acquired generated approximately $10 million of trailing twelve-month revenue.