The Cooper Companies Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

The Cooper Companies Inc. (NYSE:COO) reported net income above Wall Street’s expectations for the fourth quarter. Cooper Companies develops, manufactures, and markets healthcare products, primarily medical devices through its two business units: CooperVision and CooperSurgical.

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The Cooper Companies Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for The Cooper Companies Inc. rose to $56.6 million ($1.15 per share) vs. $48.2 million ($1.03 per share) in the same quarter a year earlier. This marks a rise of 17.5% from the year earlier quarter.

Revenue: Rose 15.2% to $360.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: COO reported adjusted net income of $1.46 per share. By that measure, the company beat the mean estimate of $1.21 per share. Analysts were expecting revenue of $356.9 million.

Quoting Management: Robert S. Weiss, Cooper’s president and chief executive officer said, “I am pleased to report record financial results for fiscal 2011 including record revenues at both our business units. We are proud of our many accomplishments including CooperVision’s global launch of Biofinity(NYSE:R) Multifocal and its launch of Biofinity(NYSE:R) Sphere into Japan. We continued to gain market share, post solid margins, and significantly strengthen our balance sheet. While we experienced challenges such as the voluntary recall of limited lots of our Avaira(NYSE:R) product family, we remain encouraged by our business trends and believe we are well positioned to deliver strong operating results in fiscal 2012.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.9%, with the biggest boost coming in the third quarter when revenue rose 18.9% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the third quarter, by 9 cents in the second quarter, and by 17 cents in the first quarter.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 2.1 percentage points to 62% from the quarter earlier quarter. In the second quarter, the figure rose 1.8 percentage points to 57.7% from the year earlier quarter.

Net income has increased more than twofold year over year on average across the last five quarters. The biggest gain came in the second quarter, when income climbed more than sevenfold from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 98 cents per share to 94 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate hasn’t changed from $4.23 per share for the fiscal year.

Competitors to Watch: STAAR Surgical Company (NASDAQ:STAA), Teleflex Incorporated (NYSE:TFX), Utah Medical Products, Inc. (NASDAQ:UTMD), Atrion Corporation (NASDAQ:ATRI), Covidien plc (NYSE:COV), Shamir Optical Industry Ltd. (NASDAQ:SHMR), Novartis AG (NYSE:NVS), C.R. Bard, Inc. (NYSE:BCR), Johnson & Johnson (NYSE:JNJ), and Boston Scientific Corp. (NYSE:BSX).

Stock Performance: Shares of COO were down 0.7% from the previous close.

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