Cooper Companies Report ‘Solid’ Financial Results and Market-Share Gains in Third Quarter

PLEASANTON, Calif.—The Cooper Companies Inc. (NYSE:COO) reported “solid results” for its third quarter that reflect “market-share gains” and improved profitability, president and chief executive officer Robert S. Weiss said in the financial announcement late Thursday.

The company said revenue for the quarter ended July 31 increased 7 percent year-over-year to $556 million (at constant currency exchange). At the business-unit level, CooperVision (CVI) revenue rose 8 percent to $437.3 million (at constant exchange) and CooperSurgical (CSI) revenue increased 13 percent to $118.7 million, according to the announcement.

“This was another solid quarter with market-share gains, improving profitability and strong cash generation,” Weiss said. “I’m very happy with the continuing progress in both our businesses and continue to see a bright future ahead.”

Cooper’s net income in the quarter totaled $103.6 million, a 17.5 percent increase compared with net income of $88.2 million in the year-ago period.

On a company-wide basis, Cooper said its gross-margin rate of 64 percent in the 2017 third quarter compared with a gross-margin rate of 62 percent in the year-ago period (on a GAAP basis). “The gross margin was positively impacted primarily by favorable product mix and currency within CooperVision as well as improved margins at CooperSurgical from successful integration activity,” according to the announcement.

CooperVision results showed an 11 percent sales increase for toric lenses (to $138.3 million), and a 14 percent increase in sales of single-use sphere lenses (to 115.8 million) in the quarter. Sales of non single-use sphere lenses rose 2 percent to $136.4 million, according to the announcement. Sales of multifocal lenses rose 7 percent to $46.8 million in the quarter.

Cooper also updated its fiscal year 2017 guidance, and now expects 2017 total revenue of between $2.13 billion and $2.14 billion. The CooperVision business unit forecasts sales for 2017 coming in between $1.67 billion and $1.68 billion, according to the announcement.

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