Cooper Companies Profit Misses View, Outlook Weak; Shares Fall 11%

(RTTNews) - Medical device maker Cooper Companies Inc. (COO), Thursday reported an increase in profit for the fourth quarter, helped by lower operating costs. However, both earnings and revenues fell short of expectations, sending shares of the company down by 11 percent in the after-hours trading.

Pleasanton, California-based Cooper's fourth-quarter profit rose to $36.7 million or $0.75 per share from $30.8 million or $0.63 per share last year.

Adjusted earnings for the quarter rose to $2.00 per share from $1.95 per share last year. On average, 13 analysts polled by Thomson Reuters estimated earnings of $2.11 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter dropped 3 percent to $455.5 million from $468.0 million last year. Analysts had a consensus revenue estimate of $474.25 million for the quarter.

Commenting on the results, CEO Robert Weiss said, "I am pleased to report record revenue and record non-GAAP EPS for the year. We accomplished this through market share gains across our geographies, success with the Biofinity family of products and a continued push into 1 Day silicone hydrogel with clariti and MyDay."

Gross margin dropped to 56 percent from 60 percent last year, hurt largely by currency and integration and facility start-up costs.

Looking forward to the first quarter, the company expects adjusted earnings of $1.52 to $1.62 per share and revenues of $435 million to $447 million. Analysts currently estimate earnings of $1.93 per share on revenues of $464.24 million for the quarter.

For the full year 2016, the company expects earnings of $7.60 to $7.90 per share and revenues of $1.83 billion to $1.87 billion. Analysts currently estimate earnings of $8.45 per share on revenues of $1.93 billion.

COO closed Thursday's trading at $142.05, down $7.33 or 4.91%, on the NYSE. The stock further dropped $15.80 or 11.12% in the after-hours trade.