CooperCompanies Inc. (Nasdaq: COO) reported its fiscal second quarter 2025 results for the period ending April 30, 2025, demonstrating solid revenue growth and improved profitability in its medical device business.
Key Financial Highlights: - Total revenue increased 6% year-over-year to \(1.002 billion, driven by a 7% increase on both an organic basis and in constant currency. - CooperVision revenue rose 5% to \)669.6 million, backed by 7% organic growth. Notable segment growth included toric and multifocal lenses increasing 7% organically, while sphere and other lenses advanced 6%. - CooperSurgical revenue grew 8% to \(332.7 million, with the office and surgical portfolio leading at 10% organic growth. - GAAP diluted earnings per share (EPS) remained steady at \)0.44, while non-GAAP diluted EPS increased 14% to $0.96. - Gross margin improved to 68% from 67%, supported by operational efficiencies and product mix. - Operating margin on a GAAP basis rose to 18%, while non-GAAP operating margin increased to 25% from 24%.
Cash Flow and Capital Deployment: - Operating cash flow was \(96.2 million against \)78.1 million in capital expenditures, resulting in \(18.1 million of free cash flow. - The company repurchased \)40.6 million of common stock (approximately 537,200 shares at an average price of \(75.60), with \)215.8 million remaining in the buyback program.
Fiscal Year 2025 Outlook: - The company expects total revenue between \(4.107 billion and \)4.146 billion, representing 5% to 6% organic growth. - CooperVision revenue is projected to range from \(2.759 billion to \)2.786 billion, reflecting 6% to 7% organic growth. - CooperSurgical revenue guidance stands at \(1.347 billion to \)1.359 billion, targeting 3.5% to 4.5% organic growth. - Non-GAAP diluted EPS is forecasted between \(4.05 and \)4.11.
Operational and Strategic Insights: The results reinforce themes from prior earnings calls emphasizing growth driven by innovation in CooperVision’s daily silicone hydrogel lens portfolio and CooperSurgical’s expanding office and surgical product lines. These initiatives have delivered consistent margin improvement and market share gains.
Despite challenges from tariffs, regulatory environments, and currency fluctuations, CooperCompanies continues to demonstrate resilience through geographic diversification, operational discipline, and capital efficiency.
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