Cooper Companies Likely to Beat Q3 Earnings Estimate on Lens Demand

The Cooper Companies, Inc.’s COO third-quarter fiscal 2025 results are scheduled to be released on Aug. 27, after the closing bell.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 3.23%. Its earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 3.18%.

Q3 Estimates

The Zacks Consensus Estimate for revenues is pegged at $982 million, indicating a 5.4% increase from the year-ago quarter’s level. The consensus mark for earnings is pinned at 92 cents per share, implying an 8.2% improvement from the prior-year period’s reported number.

Factors to Note

Cooper Companies reports revenues under two major segments — CooperVision (“CVI”) and CooperSurgical (“CSI”). Both these segments have displayed strength in the past few quarters. Overall, the quarterly results are expected to reflect rising demand for contact lenses and PARAGARD as well as pricing improvements.

Moreover, the company’s capacity expansion is boosting the availability of multifocal and extended torics ranges as well as supporting new launches like MyDay Energy’s in Canada and upgraded Clarity One Day Sphere with WetLoc technology in Japan and expanded private labels.

CVI to Benefit From Lens Demand

In the second quarter of 2025, the CVI segment delivered solid growth across all geographies, with The Americas leading the growth. The trend is likely to have continued in the fiscal third quarter. Moreover, COO enjoys leadership in several contact lens categories and might have gained from anticipated market growth of 4-6% in 2025. The new launches are expected to have brought in additional revenues in the soon-to-be-reported quarter.

The company is witnessing strong growth across all its contact lens brands — MyDay, Clarity, Biofinity and Avaira. The robust demand for COO’s premium brand, MyDay, is likely to have continued in the fiscal third-quarter on the back of availability in new markets and channels as well as greater penetration in existing accounts. The company’s MyDay Toric Parameter Expansion program continues to progress well across North America and Europe, driving demand for the brand by providing the widest SKU range to eye care practitioners.

Meanwhile, sales of the low-cost MyDay alternative, Clarity, are likely to have grown in double-digits during the soon-to-be-reported quarter. The company’s frequent replacement lenses, Biofinity, continues to strengthen its position as the number one contact lens in the world, capturing market share and driving demand with market-leading prescription options, including spheres, torics, multifocals, extended ranges, made-to-order products and Energys. Sales are likely to have grown in mid-to-high single digits during the fiscal third-quarter.

The company anticipates segment sales to grow 6-7% in fiscal 2025. Per our model estimates, this segment’s sales are projected to increase 6.5% organically. The segment’s operating income is likely to grow 11.7% to $192.9 million.

The Cooper Companies, Inc. Price and EPS Surprise

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

Weak Fertility Demand Might Have Dampened CSI Growth

The CSI segment’s quarterly sales numbers are likely to reflect strength in minimally invasive gynecological surgical devices, including ALLY Uterine manipulator portfolio. Moreover, labor and delivery products like the Fetal Pillow and the Cervical Ripening Balloon should have boosted sales during the quarter. Meanwhile, the recently-acquired OVP Surgical sales grew 31% in fiscal second-quarter, a trend that is likely to have continued in the soon-to-be-reported quarter.

However, the weakness in fertility business is likely to have continued in the fiscal third quarter, especially due to declining fertility cycles in Asia-Pacific market. Moreover, a tighter cash management by fertility clinics amid rising global trade uncertainty might have delayed capital purchases and installments. However, this weakness is likely to have been partially offset by the strength in EMEA and the Americas.

Apart from fertility, COO anticipates PARAGARD sales to decline in fiscal third-quarter are recording 15% growth in the first half. Moreover, a price increase from May 1 might have dented demand for the device, offset by continued interest in the new single-hand inserter launched earlier this year.

The company expects the segment sales to grow 3.5-4.5% organically in fiscal 2025. Per our model estimates, this segment’s sales are projected to grow by 2.7% organically. The segmental operating income is projected to decline 14.4% to $35.4 million.

What Our Quantitative Model Suggests

Our proven model predicts an earnings beat for Cooper Companies this earnings season. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.08 per share) and the Zacks Consensus Estimate ($1.07), is +1.41%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: COO carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering, as these, too, have the right combination of elements to come up with an earnings beat this reporting cycle.

Cardinal Health CAH has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CAH delivered a trailing four-quarter average earnings surprise of 9.17%. The Zacks Consensus Estimate for first-quarter fiscal 2026 EPS implies a gain of 17% from the year-ago reported figure.

McKesson MCK has an Earnings ESP of +0.25% and a Zacks Rank #3 at present.

MCK delivered a trailing four-quarter average earnings surprise of 1.50%. The Zacks Consensus Estimate for second-quarter fiscal 2026 EPS implies a gain of 21.2% from the year-ago reported figure.

Dentsply Sirona XRAY has an Earnings ESP of +0.35% and a Zacks Rank of 3 at present.

XRAY delivered a trailing four-quarter average earnings surprise of 4.23%. The Zacks Consensus Estimate for third-quarter EPS is pegged at 46 cents.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research