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Is a Beat Likely for Cooper Companies (COO) in Q2 Earnings?

The Cooper Companies, Inc.’s COO second-quarter fiscal 2023 results are scheduled to be released on Jun 1, after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 9.02%. Its earnings missed estimates in three of the trailing four quarters and beat once, the average negative surprise being 1.82%.

Q2 Estimates

The Zacks Consensus Estimate for revenues is pegged at $862.3 million for the soon-to-be-reported quarter, indicating a 3.9% increase from the year-ago quarter’s level. The same for earnings stands at $3.00 per share, implying a 7.4% decline from the prior-year period’s reported number.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (CVI) and CooperSurgical (CSI). Both these segments displayed strength in the past few quarters. This trend is likely to have continued in the  second quarter of fiscal 2023.

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Solid performance across the company’s daily silicone hydrogel portfolio and myopia management, and strength in torics and multifocals are expected to have contributed to the CVI segment’s performance.

The segment’s revenues for fiscal 2023 are projected in the range of $2.352-$2.388 billion (organic growth of 8-9%). This momentum is likely to get reflected in the to-be-reported quarter’s results.

CSI displayed strength in the fiscal first quarter of 2023, with revenues of $277.2 million. The top line increased 23% year over year on a constant currency basis and 26% on a reported basis.

The segment benefited from fertility as well as surgical products. This trend is likely to have continued in the quarter to be reported.

For fiscal 2023, CSI revenues are expected in the range of $1.144-$1.166 billion (5-7% organic growth). This strength is likely to get reflected in the to-be-reported quarter’s results.

During the fiscal first quarter of 2023, the company witnessed a significant increase in revenues with respect to MiSight's 1-day contact lenses. The momentum is likely to have continued in the fiscal second quarter, courtesy of the excellent progress of its key accounts and entry into new pilot programs with retailers and buying groups globally.

Cooper Companies has been witnessing higher demand for contact lenses, driven by the recent global transition to daily contact lenses by customers. The company’s advancements in customized product offerings are expected to have contributed to its fiscal second-quarter performance.

The Cooper Companies, Inc. Price and Consensus

The Cooper Companies, Inc. Price and Consensus
The Cooper Companies, Inc. Price and Consensus

The Cooper Companies, Inc. price-consensus-chart | The Cooper Companies, Inc. Quote

Earnings Beat Likely

Our proven model predicts an earnings beat for Cooper Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.06) and the Zacks Consensus Estimate ($3.00) is +2.04%.

Zacks Rank: The company carries a Zacks Rank #2 at present.

Other Stocks Worth a Look

Alpha Tau Medical DRTS has an Earnings ESP of +4.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Loss per share estimate for DRTS is likely to improve 1.9% in 2023. The company delivered an average earnings surprise of 40.84% in the trailing four quarters.

SmileDirectClub SDC has an Earnings ESP of +7.90% and a Zacks Rank #3 at present. SDC has an estimated earnings growth rate of 40.9% for fiscal 2023.

SmileDirectClub delivered a four-quarter average earnings surprise of 0.81%.

LAVA Therapeutics LVTX has an Earnings ESP of +4.26% and a Zacks Rank #3 at present. LVTX has an estimated long-term growth rate of 20%.

LAVA Therapeutics delivered a four-quarter average earnings surprise of 87.72%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The Cooper Companies, Inc. (COO) : Free Stock Analysis Report

SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report

LAVA Therapeutics N.V. (LVTX) : Free Stock Analysis Report

Alpha Tau Medical Ltd. (DRTS) : Free Stock Analysis Report

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