Cooper Companies Inc.
) revealed that its board of directors expanded its existing
share repurchase program by authorizing an additional $200.0
million shares. This has brought the total repurchase
authorization to $500.0 million worth of shares. After the
announcement, shares of the company rose 2.2% to $122.14 till
The Pleasanton, Calif.-based contact lens maker initiated the
share repurchase program in December, 2011, authorizing share
repurchase up to $150.0 million. The 2011 share repurchase
program was amended in December 2012, enhancing the total
authorization to $300.0 million and changing the expiration date
After the amendment, COO repurchased 460 thousand shares for
$44.4 million in the fiscal-first quarter ended Jan 31, 2013 and
then 960 thousand shares for $123.0 million in the fiscal-fourth
quarter ended Oct 31, 2013. Currently, the repurchase program has
$261.5 million worth of shares remaining for repurchase without
any expiration date.
Cooper Companies reported earnings and revenues for the fiscal
fourth quarter ended Oct 31, 2013, both of which lagged the Zacks
Consensus Estimate. The company's adjusted earnings of $1.48 per
share exceeded the year-ago level earnings merely by a penny. It
missed the Zacks Consensus Estimate by 32 cents as well as the
company's own guidance of $1.76-$1.81 for the quarter.
Revenues in the quarter grew 3.9% to $411.9 million, which was
below the Zacks Consensus Estimate of $422 million but consistent
with the COO's guidance between $410 and $425 million (albeit at
the lower end). The company benefited from its Biofinity lineups
and launch of MyDay daily disposable lenses.
For fiscal 2013, Cooper Companies posted a 15.3% rise in adjusted
earnings to $5.95 per share from $5.16 a year ago. Revenues
increased 9.9% to $1,587.7 million, and 8% excluding currency and
acquisitions. CVI revenues grew 7% (10% in constant currency) to
$1,268.3 million, and CSI revenues surged 25% (3% excluding
acquisitions) to $319.4 million.
For fiscal 2014, COO expects total revenues between $1,675 and
$1,735 million, including CVI and CSI revenues of $1,355-$1,395
million and $320-$340 million, respectively. Both reported and
adjusted earnings are expected in the range of $6.70-$7.00 for
the year. The Zacks Consensus Estimates for 2014 revenues and
earnings are $1,703 million and $6.83, respectively.
Currently, Cooper Companies carries a Zacks Rank #4 (Sell). While
we avoid COO, some better-ranked medical/dental supplies stocks
Align Technology Inc.
Cardinal Health, Inc.
). McKesson Corporation carries a Zacks Rank #1 (Strong Buy),
while both Align Technology and Cardinal Health carry a Zacks
Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
MCKESSON CORP (MCK): Free Stock Analysis
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