The market capitalization is $16.8 billion, and Cooper Companies, Inc. (COO) is a specialized medical device company that contacts lens wearers and develops, manufactures and puts the market into the market. The San Ramon, California-based company's products are primarily designed to solve visual challenges such as astigmatism, presbyopia and dry eyes.
Companies worth more than $10 billion are usually classified as “large caps”, COOs are perfectly suited to labels, market caps exceed this threshold, highlighting their size, influence and advantage in the medical device and supply industries. With a strong global presence in over 100 countries, the company benefits from stable demand and a business model that withstands the recession. Drive growth through continuous innovation and strategic acquisitions and expand product portfolio and market reach.
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Despite its remarkable strength, the vision care company slipped 25.2% from its 52-week high on September 16, 2024, reaching September 16, 2024. Additionally, it has fallen 9.4% over the past three months, falling behind in the acquisition of the broader Healthcare Select Sector SPDR Fund (XLV) 5.6% over the same time.
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In the long term, COOs have fallen by 16.3% over the past 52 weeks, with 1.2% of XLV rising over the same time frame. Furthermore, on a YTD basis, COO shares have fallen nearly 8.6% compared to a 7% increase in XLV.
To confirm that bearish trend, COO has been below the 200-day moving average with slight fluctuations since mid-December 2024, and has experienced some fluctuations below the 50-day moving average from late October 2024.
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On March 6, the COO announced its first quarter earnings results, with the share price falling 6.6% the following day. The decline occurred as the company reported revenue of $964.7 million. This was down 1.6% in analyst expectations despite an increase of 3.6% year-on-year. An important factor contributing to this revenue error was the reported decline in cooperative Asia-Pacific revenue. However, on a positive note, adjusted revenues rose 8.2% year-on-year to $0.92 per share, with consensus estimates above $0.91. This revenue beat is supported by an increase in both adjusted gross gross profit margin and operating profit margin, reflecting improved efficiency and cost management.
Looking forward to fiscal year 2025, the company expects a adjusted EPS between $3.94 and $4.02, with revenues ranging from $4.1 billion to $4.2 billion, representing an organic increase of 6% to 8%.
The Cooper company's misperformance appears even more pronounced when compared to its rival Alcon Inc. (ALC). This has achieved 10.5% in the last 52 weeks and 8.8% on a YTD basis.
The COO's recent performance has been linked to the broader sector, but analysts remain moderately bullish on the outlook. The stock has a “medium buy” consensus rating from 16 analysts that cover it, with an average price target of $110.36 suggesting an ambitious 31.3% premium at its current level.
On the date of publication, Neharika Jain had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, see BarChart's disclosure policy.
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