Cooper’s 1Q Results Beat The Street Consensus; Street Says Buy

Cooper Cos. reported better-than-expected fiscal 1Q results, driven by higher revenues and improved margins. However, shares of the medical device company closed 2.5% lower on March 4.

Cooper (COO) posted 1Q adjusted earnings of $3.17 per share that surpassed analysts’ expectations of $2.78 and jumped 18% year-over-year. Revenue of $680.5 million beat the Street’s estimates of $660.7 million and grew 5% from the year-ago period.

The company’s CooperVision (CVI) revenue came in at $507 million in the quarter, up 4% year-over-year, while CooperSurgical (CSI) sales increased 8% to $173.5 million. Adjusted gross margin was 68%, up from 67% reported in the prior-year quarter. (See Cooper stock analysis on TipRanks)

For the fiscal year 2021, the company projects total revenue to land between $2.8 billion to $2.845 billion, versus the consensus estimate of $2.76 billion. Adjusted EPS is anticipated to range between $12.90 and $13.10, versus analysts’ expectations of $12.54 per share.

On Feb. 11, Piper Sandler analyst Matthew O’Brien increased the stock’s price target to $435 (17% upside potential) from $370 and reiterated a Buy rating. The analyst believes that “first half of 2021 estimates may be a little high due to COVID,” but he remains “bullish on the story over the next 12 months after speaking to a contact lens distributor.”

The consensus rating among analysts is a Strong Buy based on 4 unanimous Buys. The average analyst price target stands at $435 and implies upside potential of about 17% to current levels. Shares have gained more than 14% over the past year.

Additionally, Cooper scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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