Cooper Cos. shares tumble 11% as Q4 revenue guidance falls short of estimates

Published 27/08/2025, 21:48
 Cooper Cos. shares tumble 11% as Q4 revenue guidance falls short of estimates

SAN RAMON, Calif. - Cooper Companies (NASDAQ:COO) saw its shares plunge 11% after the medical device maker issued fourth-quarter revenue guidance below analyst expectations, despite reporting better-than-expected third-quarter earnings.

The company reported third-quarter adjusted earnings per share of $1.10, exceeding analyst estimates of $1.06. Revenue came in at $1.06 billion, matching consensus expectations and representing a 6% increase YoY.

However, investors focused on Cooper’s disappointing fourth-quarter revenue outlook of $1.05-1.07 billion, which fell short of the $1.09 billion analysts had projected.

Cooper’s stock tumbled following the results as the market reacted negatively to the revenue guidance, despite the company raising its earnings forecast. The company now expects fourth-quarter adjusted EPS of $1.10-$1.14, in line with the consensus estimate of $1.12.

"I am pleased to report that we delivered strong margins, double-digit earnings growth, and robust free cash flow reflecting the operational excellence that remains central to our growth strategy," said Al White, CooperCompanies’ President and CEO. "Our revenues were below expectations but we’re raising earnings guidance to reflect our operational performance and expect improving revenue in Q4 and in fiscal 2026 driven by MyDAY®."

CooperVision, the company’s contact lens division, posted revenue of $718.4 million, up 6% YoY, while CooperSurgical revenue increased 4% to $341.9 million. The company’s non-GAAP operating margin improved to 26%, up 60 basis points from the previous year, driven by stronger gross margins and targeted expense management.

For fiscal 2025, Cooper now projects total revenue of $4.08-4.10 billion, representing organic growth of 4-4.5%, and adjusted EPS of $4.08-$4.12. During the quarter, the company repurchased approximately 724,300 shares for $52.1 million at an average price of $71.97 per share.

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