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Can Segmental Growth Aid Cooper Companies' (COO) Q2 Earnings?

The Cooper Companies, Inc.’s COO second-quarter fiscal 2019 results are scheduled to release on May 30, after market close.

The company expects to gain from segmental growth in the quarter to be reported.

Which Way Are Estimates Trending?

For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $653.37 million, suggesting year-over-year growth of 3.5%. The same for earnings is pegged at $2.76, indicating a year-over-year decline of 3.5%.

The Cooper Companies, Inc. Price and EPS Surprise

 

The Cooper Companies, Inc. Price and EPS Surprise

The Cooper Companies, Inc. price-eps-surprise | The Cooper Companies, Inc. Quote

Factors at Play

Cooper Companies reports revenues through two major segments — CooperVision (CVI) and CooperSurgical (CSI).

CVI’s Toric and Multifocal lenses, which make Cooper Companies a stalwart in the soft contact lenses market, are expected to drive second-quarter results. Additionally, CSI’s Surgical product portfolio is also expected to fuel growth.

Management at Cooper Companies expects to see higher contact lenses demand owing to the global transition to daily contact lenses by customers. Moreover, the company has made advancements in its customized product offerings which are expected to ramp up second-quarter sales.

It is encouraging to note that for fiscal 2019, Cooper Companies expects CVI sales within $1,968-$$1,995 million, higher than $1,940-$1,980 million anticipated earlier.

Coming to CSI, management is optimistic about the acquisitions of Blanchard and Incisive Surgical earlier this year. This is expected to boost the company’s specialty lens business in the quarter to be reported.

It is encouraging to note that for fiscal 2019, Cooper Companies expects CSI sales within $663-$681 million, up from the previous guidance of $660-$680 million.

What Does Our Model Predict?

Our quantitative model indicates a positive earnings surprise for Cooper Companies. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. However, this is not the case here.

Earnings ESP: The Earnings ESP for Cooper Companies is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cooper Companies carries a Zacks Rank #3.

Stocks With Robust Q1 Results

Here are a few stocks that have reported solid results this earning season:

Stryker Corporation SYK delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate. The stock carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

DENTSPLY SIRONA Inc. XRAY reported adjusted earnings per share of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues of $946.2 million surpassed the Zacks Consensus Estimate of $917.1 million. The stock carries a Zacks Rank #2.

CONMED Corporation CNMD reported first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million. The stock carries a Zacks Rank of 2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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