Cooper Companies' Q1 Earnings Surpass Expectations, Lifts FY22 Outlook

Cooper Companies Inc's COO Q1 FY22 revenues increased 16% Y/Y to $787.2 million, up 19% in constant currency and 13% organically, beating the consensus of $744.34 million.

• The CooperVision (CVI) segment revenue increased 11% to $561.5 million, and CooperSurgical (CSI) revenue up 30% to $225.7 million.
• Non-GAAP EPS of $3.24, up 2% Y/Y, beat the consensus of $3.10.
• The adjusted gross margin was 67%, down from 68% last year, driven primarily by currency. Adjusted operating margin compressed to 25% from 27% in last year's first quarter, driven primarily by currency and higher investing.
• Net debt outstanding at quarter-end was $2.9 billion due to the acquisition of Generate Life Sciences. Adjusted leverage ratio was 2.71x.
• Related: CooperCompanies Scoops Up Cook Medical's Reproductive Health Business For $875M.
• Cash provided by operations of $166.0 million offset by capital expenditures of $57.1 million resulted in a free cash flow of $108.9 million.
• Guidance: Cooper Companies expects FY22 sales of $3.261 billion - $3.329 billion (organic growth of 6.5% to 8.5%), compared to the consensus of $3.29 billion.
• Earlier, the company guided sales of $3.03 billion - $3.09 billion.
• The outlook includes CVI segment revenue $2.22 billion - $2.26 billion and CSI segment sales of $1.04 billion - $1.06 billion.
• For FY22, the company expects adjusted EPS of $13.70 - $14.20, versus the consensus of $14.36 and prior guidance of $13.60 - $14.00.
• Price Action: COO shares closed 0.34% higher at $417.14 on Thursday.