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Category: Stock Market and CooperCompanies
Date: 6 December 2019 Stock Price: $312.86 We take a look at the 3rd quarter earnings for the 2019 fiscal year for CooperCompanies a company that supplies medical devices to the health industry.
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About CooperCompanies
CooperCompanies is a dynamic, innovative medical device company whose more than 12,000 employees improve lives around the world each and every day. Through our two business units - CooperVision and CooperSurgical – we provide a wide range of products and services designed to advance vision care and women's health. CooperVision is a world-leading manufacturer of contact lenses that addresses the most common and complex vision challenges, bringing a refreshing perspective that delivers real advantages for customers and wearers. CooperSurgical is committed to advancing the health of women, babies and families with its diversified portfolio of products and services focusing on women’s health, fertility and diagnostics.
CooperSurgical. Image obtained from NY dailynews.com
Overview of CooperCompanies' 4th quarter 2019 earnings report
The numbers we are interested in (for the quarter):
- Sales: $691.6 million (up from $651.5 million from the same quarter of the previous year)
- Sales increased by 6.1% over the last 12 months
- Cost of sales: $236.6 million (up from $221.5 million for the same quarter of the previous year)
- Cost of sales increased 6.8% over the last 12 months
- Net income: $121 million (up from $100.6 million for the same quarter of the previous year)
- Diluted earnings per share: $2.42 (down from $2.02 for the same quarter of the previous year)
- PE ratio: 32.2 (assuming the earnings per share this quarter is repeated for all quarters of the fiscal year)
- Dividend declared for the quarter: $0.16 (up from $0.14 for the same quarter of the previous year)
- Dividend yield: 2.4% (assuming the dividend paid this quarter is repeated for all quarters of the fiscal year)
- Diluted weighted-average shares outstanding: 50 million (up from 49.9 million for the same quarter of the previous year)
- Cash and cash equivalents: $89 million
- Cash and cash equivalents per share: $1.78
- Cash and cash equivalents makes up 0.56% of CooperCompanies's market capital
- Cash and cash equivalents makes up 1.41 % of CooperCompanies's total assets
- Trade receivable: $435.3 million
- Trade receivable makes up 6.9% of the CooperCompanies's total assets.
- Inventories: $506 million (up from $468.8 million for the same quarter of the previous year)
- Inventories makes up 8% of CooperCompanies's total assets
- Inventories grew by 8.1% over the last 12 months
- Stockholders equity: $3.628 billion
- Stockholders equity per share: $72.56
- The CooperCompany''s stock is trading at 4.3 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at
CooperCompanies' management commentary on the results and earnings guidance
SAN RAMON, Calif., Dec. 05, 2019 (GLOBE NEWSWIRE) -- CooperCompanies (NYSE: COO) today announced financial results for the fiscal fourth quarter and full year ended October 31, 2019.
Commenting on the results, Albert White, Cooper’s president and chief executive officer said, "We closed this year on a high note with a strong fourth quarter driving record full-year revenues and profits. We continued to execute on our growth strategies across both businesses, delivering strength across key products and geographies. As we enter fiscal 2020, we believe we are well positioned to continue producing strong results and driving market penetration."
Commenting on the results, Albert White, Cooper’s president and chief executive officer said, "We closed this year on a high note with a strong fourth quarter driving record full-year revenues and profits. We continued to execute on our growth strategies across both businesses, delivering strength across key products and geographies. As we enter fiscal 2020, we believe we are well positioned to continue producing strong results and driving market penetration."
Fiscal Year 2020 Guidance
The Company initiated its fiscal year 2020 guidance. Details are summarized as follows:
The Company initiated its fiscal year 2020 guidance. Details are summarized as follows:
- Fiscal 2020 total revenue $2,767 - $2,817 million (5% to 7% constant currency)
° CVI revenue $2,070 - $2,100 million (5.5% to 7% constant currency)
° CSI revenue $697 - $717 million (3% to 6% constant currency) - Fiscal 2020 non-GAAP diluted EPS of $12.60 - $13.00
- Fiscal first quarter 2020 total revenue $638 - $653 million (2% to 5% constant currency)
° CVI revenue $480 - $490 million (3% to 5% constant currency)
° CSI revenue $158 - $163 million (flat to 4% constant currency) - Fiscal first quarter 2020 non-GAAP diluted EPS of $2.65 - $2.75
CooperCompanies (NYSE: COO) stock price history
The image below, obtained from Google, shows CooperCompanies stock price history for the last 5 years. And its been a good time for stockholders with the group's stock increasing from $158.30 a stock 5 years ago and its currently trading at $312.86 right now. That's a very good return of 97.6% provided to CooperCompanies stockholders over the last 5 years.
CooperCompanies (NYSE: COO) stock price history over the last 5 years
Recent coverage of CooperCompanies
The extract below covers the latest regarding CooperCompanies a obtained from Zacks.com
Cooper Cos. (COO - Free Report) came out with quarterly earnings of $3.30 per share, beating the Zacks Consensus Estimate of $3.27 per share. This compares to earnings of $2.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.92%. A quarter ago, it was expected that this surgical and contact lens products maker would post earnings of $3.16 per share when it actually produced earnings of $3.23, delivering a surprise of 2.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cooper Cos.Which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $691.60 million for the quarter ended October 2019, surpassing the Zacks Consensus Estimate by 0.91%. This compares to year-ago revenues of $651.50 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.Cooper Cos. Shares have added about 22.6% since the beginning of the year versus the S&P 500's gain of 24.2%.
Read the full article here
Cooper Cos. (COO - Free Report) came out with quarterly earnings of $3.30 per share, beating the Zacks Consensus Estimate of $3.27 per share. This compares to earnings of $2.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.92%. A quarter ago, it was expected that this surgical and contact lens products maker would post earnings of $3.16 per share when it actually produced earnings of $3.23, delivering a surprise of 2.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cooper Cos.Which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $691.60 million for the quarter ended October 2019, surpassing the Zacks Consensus Estimate by 0.91%. This compares to year-ago revenues of $651.50 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.Cooper Cos. Shares have added about 22.6% since the beginning of the year versus the S&P 500's gain of 24.2%.
Read the full article here
CooperCompanies (NYSE: COO) latest stock valuation
So based on CooperCompanies latest earnings report and financial guidance for their 2020 fiscal year, what is our target price for CooperCompanies? Our valuation models provide a target price (full value price) for CooperCompanies stock at $279.10 a stock.
We therefore believe the stock of CooperCompanies is overvalued.
We usually recommend that long term fundamental and value investors look to enter the stock at around 10% below our target (full value) price of $279.10 a stock. So a good entry point into the stock of CooperCompanies would be at $251.20 or below. We therefore expect the stock of CooperCompanies to pull back from its current levels to levels closer to our target (full value) price in coming weeks and months.
We therefore believe the stock of CooperCompanies is overvalued.
We usually recommend that long term fundamental and value investors look to enter the stock at around 10% below our target (full value) price of $279.10 a stock. So a good entry point into the stock of CooperCompanies would be at $251.20 or below. We therefore expect the stock of CooperCompanies to pull back from its current levels to levels closer to our target (full value) price in coming weeks and months.
Next earnings release of CooperCompanies
It is expected that CooperCompanies will release their 1st quarter 2020 earnings report in early March 2020