Cooper Profit Down, Lowers Outlook; Shares Slip 5%

(RTTNews) - Medical device maker Cooper Companies Inc. (COO), Thursday reported a drop in profit for the second quarter, as increase in revenues were offset by lower gross margins and higher operating costs, with both earnings and revenues falling short of expectations.

Shares of the company fell five percent in the after-hours trading after it lowered its full-year sales outlook.

Pleasanton, California-based Cooper's second-quarter profit dropped to $60.7 million or $1.23 per share from $79.2 million or $1.62 per share last year.

Excluding special items, adjusted earnings for the quarter declined to $1.72 per share from $1.76 per share a year ago. On average, 13 analysts polled by Thomson Reuters estimated earnings of $1.76 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter rose 5 percent to $434.7 million from $412.3 million last year. Analysts had a consensus revenue estimate of $453.2 million for the quarter.

Revenues at CooperVision, which contributes majority of company's revenues, rose 9 percent to $359.6 million, while CooperSurgical revenues slipped 8 percent to $75.1 million.

Gross margins declined to 62 percent from 65 percent last year, while operating margin dropped to 16 percent from 22 percent a year ago.

Moving ahead, CEO Robert Weiss said, "We remain confident we are well positioned to accelerate growth in the back half of this year and into fiscal 2016."

For the full year 2015, the company continues to expect adjusted earnings of $7.40 to $7.70 per share. Cooper now sees revenues of $1.82 billion to $1.86 billion, down from prior outlook of $1.86 billion to $1.91 billion. Analysts currently expects earnings of $7.58 per share on revenues of $1.88 billion for the year.

COO closed Thursday's trading at $180.14, down $4.70 or 2.54%, on the NYSE. The stock further dropped $9.14 or 5.07% in the after-hours trading.