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Jan 31, 2024

Cooper Q1 2024 Earnings Report

Reported a revenue increase of 9% year-over-year, reaching $931.6 million, with strong performance in contact lenses and fertility segments and non-GAAP EPS increased by 18% to $0.85.

Key Takeaways

CooperCompanies announced strong Q1 2024 results with record quarterly revenues of $931.6 million, a 9% increase year-over-year. CooperVision revenue grew by 7% and CooperSurgical revenue grew by 12%. The company's non-GAAP EPS increased by 18% to $0.85.

Revenue increased 9% year-over-year to $931.6 million.

CooperVision (CVI) revenue up 7% to $621.5 million.

CooperSurgical (CSI) revenue up 12% to $310.1 million.

Non-GAAP diluted EPS of $0.85, up $0.12 or 18% from last year's first quarter.

Total Revenue
$932M
Previous year: $859M
+8.5%
EPS
$0.85
Previous year: $0.73
+16.4%
Gross margin
67%
Previous year: 65%
+3.1%
Operating margin
16%
Previous year: 17%
-5.9%
Gross Profit
$624M
Previous year: $559M
+11.7%
Cash and Equivalents
$135M
Previous year: $118M
+14.4%
Free Cash Flow
$4.6M
Previous year: $83.6M
-94.5%
Total Assets
$12B
Previous year: $11.6B
+4.1%

Cooper

Cooper

Cooper Revenue by Segment

Cooper Revenue by Geographic Location

Forward Guidance

The Company raised its fiscal year 2024 financial guidance.

Positive Outlook

  • Fiscal 2024 total revenue of $3,847 - $3,897 million (organic growth of 7% to 8%)
  • CVI revenue of $2,573 - $2,604 million (organic growth of 8% to 9%)
  • CSI revenue of $1,274 - $1,293 million (organic growth of 5% to 7%)
  • Fiscal 2024 non-GAAP diluted EPS of $3.50 - $3.58
  • Momentum is excellent with capacity expansion progressing well and demand remaining very healthy.

Challenges Ahead

  • Guidance excludes amortization and impairment of intangible assets, and other exceptional or unusual income or gains and charges or expenses including acquisition and integration costs
  • inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses
  • impact of international conflicts, such as Russia's invasion of Ukraine
  • Compliance costs and potential liability in connection with U.S. and foreign laws and health care regulations pertaining to privacy and security of personal information
  • market consolidation of large customers globally through mergers or acquisitions resulting in a larger proportion or concentration of our business being derived from fewer customers

Revenue & Expenses

Visualization of income flow from segment revenue to net income