The Cooper Companies Third Quarter Earnings Sneak Peek

The Cooper Companies, Inc. (NYSE:COO) will unveil its latest earnings on Thursday, September 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 analyst estimate is for net income of $1.29 per share, a rise of 12.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.30. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.29 during the last month. For the year, analysts are projecting profit of $5.04 per share, a rise of 12% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 8 cents, coming in at net income of $1.12 per share versus a mean estimate of profit of $1.20 per share. In the first quarter, the company beat estimates by 9 cents.

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A Look Back: In the second quarter, profit rose 55.3% to $54.9 million ($1.12 a share) from $35.4 million (73 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 5.9% to $344.6 million from $325.3 million.

Stock Price Performance: From August 2, 2012 to August 30, 2012, the stock price rose $10.87 (15%), from $72.29 to $83.16. 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 August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 8.1% (+$5.86) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 4.6% in revenue from the year-earlier quarter to $367.6 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 17.5% in the fourth quarter of the last fiscal year and 20.6% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 18.9% in the third quarter of the last fiscal year, 15.2% in the fourth quarter of the last fiscal year and 11.2% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.53 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 regressed in this liquidity measure from 2.69 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.5% to $228.1 million while assets rose 3.8% to $576.3 million.

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

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

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