The Cooper Companies Inc. (NYSE: COO) reported late on Thursday that fiscal third quarter income soared 37% as the bottom line was boosted by fatter margins and improved sales. Shares gained about 2.50% in extended trading hours as adjusted earnings edged past Street’s estimate. However, revenue missed expectation.
The contact lens maker meanwhile cuts its top end guidance on full-year revenue but raised its full-year earnings outlook.
For the fiscal third quarter ended April 30, the Pleasanton, California-based Company which competes with companies such as Bausch & Lomb and Alcon, reported a profit of $75.1 million or $1.52 a share. In the same quarter of last fiscal year, the Company posted net income of $54.9 million or $1.12 a share.
Stripping out onetime items, non-GAAP earnings stood at $1.50 a share. Analysts’ consensus estimate was for earnings of $1.38 a share, according to a data compiled by Thomson Reuters.
Total sales climbed 11% to $384.04 million from $344.59 million, in the year-earlier quarter. Analysts’ consensus forecast was for $389.14 million.
While revenue from CooperVision business, which makes contact lenses, rose 7% to $309.3 million, revenue from CooperSurgical business soared 32% to $74.7 million.
Gross margin widened to 66% from 64%, aided by improvement in manufacturing efficiencies, product mix and lower royalty fees paid on sales of silicone hydrogel lens. Operating margin also improved. It widened to 21% from 19%, in the same quarter of last year.
Addressing analysts and investors in a conference call, Company’s President and Chief Executive said in a statement, “I am enthused by our performance as we continue executing on our long-range strategies that lead to gaining market share and improving our operating margin.”
For the full-year fiscal, Cooper Companies anticipates adjusted earnings to be in the range of of $6.15 to $6.25 a share on revenue of $1.575 billion to $1.605 billion. Earlier the Company projected adjusted earnings to be in the range of $5.95 to $6.10 a share on revenue of $1.575 billion to $1.625 billion.
Analysts’ consensus estimate was for earnings of $6.05 a share on revenue of $1.61 billion.