CooperCompanies Cites ‘Market-Leading Products’ as Factor in 3Q Sales Increase

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PLEASANTON, Calif.—CooperCompanies (NYSE: COO) reported Thursday that “market-leading products and strong operational execution” helped drive the company to a 3 percent sales increase and a double-digit earnings increase (GAAP basis) for its third quarter, which ended July 31. Sales at the company’s CooperVision business segment rose 4 percent to $509.1 million, while the smaller CooperSurgical business reported sales of $170.3 million, which was “consistent with last year,” according to the company’s earnings announcement. Overall, CooperCompanies reported third-quarter sales of $679.4 million, which was an increase of 5 percent on a pro forma basis. Net income totaled $120.1 million in the quarter, which compares with $100.8 million in the year-ago period.

GAAP diluted earnings per share totaled $2.40, an increase of 18.1 percent from last year's third quarter.

“I am pleased to report another strong quarter for the company with solid revenues and earnings,” Albert White, Cooper’s president and chief executive officer, said in the announcement. “These results were driven by our market-leading products and strong operational execution. Our businesses continue to perform well and we believe we are well positioned to continue posting strong results.”

Within the CooperVision segment, sales of toric lenses rose 6 percent (8 percent pro forma) to $163.1 million (which represented almost one-third of the segment’s total sales). Sales of single-use sphere lenses increased 6 percent (9 percent pro forma) to $146.3 million, while non single-use lenses showed a 1 percent (2 percent pro forma) sales increase to $147.3 million. (Each of these segments represented about 29 percent of CooperVision sales in the quarter.)

Sales of multifocal lenses (which represented 10 percent of segment sales) fell 1 percent to $52.4 million in the quarter. On a pro forma basis, sales of multifocal lenses rose 2 percent.

Cooper also updated its fiscal year 2019 guidance, which now calls for fiscal 2019 total revenue in the range of $2.635 billion to $2.655 billion (6 percent to 7 percent pro forma). The CooperVision segment is expected to achieve fiscal 2019 revenue in the range of $1.966 billion to $1.976 billion (7 percent to 8 percent pro forma).