The Cooper Companies Fourth Quarter Earnings Sneak Peek

The Cooper Companies, Inc. (NYSE:COO) will unveil its latest earnings on Thursday, December 6, 2012. Cooper Companies develops, manufactures, and markets healthcare products, primarily medical devices through its two business units: CooperVision and CooperSurgical.

The Cooper Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.54 per share, a rise of 5.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.52. Between one and three months ago, the average estimate moved up. It has risen from $1.53 during the last month. Analysts are projecting profit to rise by 16.2% versus last year to $5.23.

Last quarter, the company came in at profit of $1.45 per share against a mean estimate of net income of $1.29 per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 8 cents.

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A Look Back: In the third quarter, profit rose 75.4% to $66.9 million ($1.36 a share) from $38.1 million (78 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.6% to $378.2 million from $351.4 million.

Stock Price Performance: Between September 6, 2012 and November 30, 2012, the stock price rose $8.91 (10.4%), from $86.03 to $94.94. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 3.7% (-$3.31) over that span. The stock price saw one of its best stretches over the last year between November 15, 2012 and November 23, 2012, when shares rose for six straight days, increasing 6.6% (+$5.88) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 10.3% in revenue from the year-earlier quarter to $398.2 million.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 20.6% in the first quarter and 55.3% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15.2% in the fourth quarter of the last fiscal year, 11.2% in the first quarter and 5.9% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.71 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.53 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 9% to $628.1 million while liabilities rose by 1.7% to $232.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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