Company Reports

Narrow-moat CooperCompanies reported solid third-quarter results that came in slightly ahead of our expectations. Total sales of $1.0 billion were up 7.9% year over year thanks to a broad-based growth across the firm. CooperVision was up 7.3% despite lapping last year’s double-digit growth, and we attribute this to growing demand and solid execution. Capacity constraints continue to ease but demand still looks to be outpacing supply, especially within the MyDay portfolio, and we think resolving this will be a multiquarter workout. CooperSurgical, up 9.1%, continues to impress us with its ability to consistently deliver solid numbers. Against the backdrop of strong performance, Cooper raised its sales guidance about 2% at midpoint driven by an improved outlook in both business units. After updating our model and accounting for time value of money, we raise our fair value estimate to $90 per share from $88.

CooperCompanies is one of the largest eyecare companies in the US. It operates in two segments: CooperVision and CooperSurgical.

CooperCompanies is one of the largest eyecare companies in the US. It operates in two segments: CooperVision and CooperSurgical.

Narrow-moat CooperCompanies reported fiscal second-quarter results above our expectations. Total sales of $943 million were up 7.4% year over year thanks to solid execution across geographies, with every market posting strong organic sales growth. With a backdrop of healthy demand and market outperformance, management raised its full-year guidance for both segments. Its earnings per share outlook is now $3.54-$3.60, up from $3.50-$3.58. After increasing our near-term assumptions and including the time value of money, we've raised our fair value estimate to $88 per share from $86.

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical.

Narrow-moat Cooper Companies reported fiscal first-quarter results slightly above our expectations. Total sales were up 8.5% year over year, mainly driven by the strong performance of premium toric and multifocal lenses and contributions from the acquired Cook Medical assets. We maintain our $86 fair value estimate as our model adjustments were not significant enough to change our valuation.

Narrow-moat Cooper Companies announced a 4-for-1 stock split that went into effect after the market closed on Friday, Feb. 16. After updating our model to account for this, we establish a new fair value estimate of $86 per share. We think the stock, which currently trades in a 3-star territory, is fairly valued.

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical.

Narrow-moat CooperCompanies reported fourth-quarter earnings that came in largely as we expected. Total sales were up 9.3% year over year with Cooper’s vision and surgical portfolios providing solid tailwinds to the top line. We maintain our fair value estimate of $345 per share.

Narrow-moat Cooper Companies reported third-quarter results that came in higher than our expectations. Total sales were up 10.3% year over year as broad-based adoption of Cooper’s contact lenses and surgical business fueled growth. Demand for both businesses remains healthy, and management raised its full-year guidance for both segments. After accounting for our elevated near-term assumptions as well as the time value of money impact, we raise our fair value estimate to $345 per share from $325.

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical.

Narrow-moat Cooper Companies reported second-quarter earnings that were slightly higher than our expectations. Total sales were up 5.7% year over year, driven by expanded product rollouts and a recovery in the Asia-Pacific region. We are raising our fair value estimate to $325 per share from $320 given an uptick in near-term assumptions from increased full-year guidance for CooperVision and CooperSurgical as well as time value of money.

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical.

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical.

After reviewing our key valuation assumptions, we are lowering our fair value estimate for the Cooper Companies to $320 from $359 due to our revised long-term assumptions. Cooper is one of the leading vision care companies in the world and it operates in two segments: CooperVision and CooperSurgical.

Narrow-moat Cooper Companies posted solid first-quarter results. We are maintaining our fair value estimate of $359 per share.

Narrow-moat Cooper Companies finished its fiscal year with strong top-line growth moderated by a multitude of cost pressures. Management provided fiscal 2023 guidance with revenue in the range of $3.5 billion, in line with our forecast, and EPS of $12.30 to $12.60, falling somewhat short of our estimate as management now anticipates certain headwinds to last further into 2023. These headwinds are still short-lived relative to our long-term explicit forecast period, so we are maintaining our fair value estimate of $359 per share.

As a cash-pay business with sticky customers and few competitors, the contact lens industry is an attractive market, in our opinion. Four main players (Johnson & Johnson, Alcon, Bausch & Lomb, and Cooper) dominate the global market, and industry regulations paired with specialized manufacturing and technological ability creates strong barriers to entry, keeping new entrants away.

Narrow-moat Cooper Companies posted moderate third-quarter results, as organic revenue grew 9% year over year, tempered by a lower adjusted operating margin due to currency and product mix. Looking ahead, we have an optimistic view of the firm’s innovation potential and industry economics. Furthermore, demand for contact lenses and contraception is fairly insulated during recessions. We maintain our fair value estimate of $359 per share.

As a cash-pay business with sticky customers and few competitors, the contact lens industry is an attractive market, in our opinion. Four main players (Johson & Johnson, Alcon, Bausch & Lomb, and Cooper) dominate the global market, and industry regulations paired with specialized manufacturing and technological ability creates strong barriers to entry, keeping new entrants away.