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Jul 31, 2020

Cooper Q3 2020 Earnings Report

CooperCompanies' third quarter results were negatively impacted by COVID-19, but solidly exceeded expectations due to a faster than expected recovery.

Key Takeaways

CooperCompanies reported a 15% year-over-year decrease in revenue to $578.2 million. GAAP diluted earnings per share were $1.12, a 53% decrease, and non-GAAP diluted earnings per share were $2.28, a 30% decrease. The company experienced a faster than expected recovery as the quarter progressed.

Revenue decreased 15% year-over-year to $578.2 million.

CooperVision (CVI) revenue was down 12% to $449.3 million.

CooperSurgical (CSI) revenue was down 24% to $128.9 million.

Non-GAAP diluted earnings per share was $2.28, down 30% from last year.

Total Revenue
$578M
Previous year: $679M
-14.9%
EPS
$0.57
Previous year: $0.81
-29.6%
Gross margin
62%
Previous year: 66%
-6.1%
Operating margin
12%
Previous year: 21%
-42.9%
Gross Profit
$361M
Previous year: $451M
-19.9%
Cash and Equivalents
$127M
Previous year: $113M
+13.0%
Free Cash Flow
$67.7M
Previous year: $121M
-44.2%
Total Assets
$6.75B
Previous year: $6.17B
+9.3%

Cooper

Cooper

Cooper Revenue by Segment

Cooper Revenue by Geographic Location

Forward Guidance

The Company provided its fiscal fourth quarter 2020 guidance, expecting total revenue between $665 - $693 million and non-GAAP diluted earnings per share between $3.00 - $3.20.

Positive Outlook

  • Fiscal fourth quarter 2020 total revenue $665 - $693 million
  • CVI revenue $500 - $520 million
  • CSI revenue $165 - $173 million
  • Fiscal fourth quarter 2020 non-GAAP diluted earnings per share $3.00 - $3.20
  • Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and other exceptional or unusual income or gains and charges or expenses including acquisition, integration and manufacturing related costs which we may incur as part of our continuing operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income