Cooper Companies Crushes Estimates

Seth Jayson, The Motley Fool
Updated

Cooper Companies (NYS: COO) reported earnings on Dec. 8. Here's what you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Cooper Companies met expectations on revenues and crushed them on EPS. Gross margins increased, operating margins contracted, and net margins widened.

Revenue
Cooper Companies reported revenue of $361 million. The eight analysts polled by S&P Capital IQ expected to see sales of $359 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS
Non-GAAP EPS came in at $1.46. The nine earnings estimates compiled by S&P Capital IQ forecast $1.21 per share on the same basis. GAAP EPS of $1.15 for Q4 were 12% higher than the prior-year quarter's $1.03 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margins
For the quarter, gross margin was 62%, 60 basis points better than the prior-year quarter. Operating margin was 18.5%, 300 basis points worse than the prior-year quarter. Net margin was 15.7%, 30 basis points better than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $318 million. On the bottom line, the average EPS estimate is $1.02. (There are seven revenue estimates and nine EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $1.4 billion. The average EPS estimate is $4.89. (There are eight revenue estimates and 10 EPS estimates.)

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cooper Companies is outperform, with an average price target of $82.38.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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