PLEASANTON, Calif.—The Cooper Companies Inc.
(NYSE:COO) cited the performance of its daily silicone hydrogel contact lenses, among other factors, for driving a “strong quarter” and improved profitability, according to the company’s second-quarter earnings announcement Thursday afternoon. In the second quarter ended April 30, Cooper said revenue increased 21 percent year-over-year to $631.3 million. On a pro forma basis (defined as constant currency and including acquisitions in both periods), the revenue increase was 5 percent, Cooper reported.
In the CooperVision (CVI) business segment, revenue increased 14 percent to $467.5 million, while CooperSurgical’s (CSI) sales rose 44 percent to $163.8 million in the quarter.
“This was a strong quarter with improving profitability and strong cash flow,” Cooper president and chief executive officer Albert White said in the announcement. “CVI posted solid revenue growth driven by success with its daily silicone hydrogel lenses and, CSI posted a solid quarter driven by double digit growth in Paragard (a contraceptive device) and fertility solutions. As we move into the second half of the year, we are well positioned to continue posting strong results,” he added.
The company said it achieved a gross-margin rate of 64 percent in the second quarter, which compares with 66 percent in last year’s second quarter. “Gross margin was negatively impacted primarily by the previously disclosed acquisition-related inventory step-up associated with Paragard,” the announcement said. “On a non-GAAP basis, gross margin was 68 percent compared with 66 percent last year.”
On an operating margin basis, Cooper achieved a 12 percent margin in 2018 compared with 22 percent in last year’s second quarter. The decrease was primarily the result of the Paragard inventory step-up and an asset impairment charge within CooperSurgical associated with exiting carrier screening, the announcement noted.
In the CooperVision (CVI) segment, revenue rose 14 percent to $467.5 million in the second quarter. The increase on a pro forma basis was 6 percent, according to the announcement. The toric category recorded sales of $150.8 million, a 14 percent increase (8 percent pro forma), while non single-use sphere lenses recorded sales of $143.2 million, an increase of 10 percent (flat pro forma). Sales of single-use spherical lenses rose 10 percent to $124.4 million, according to the announcement. In the multifocal segment, which represents about 10 percent of the CVI segment’s overall revenue, sales rose 15 percent to $49.1 million.
Cooper also updated its fiscal year 2018 guidance in the announcement Thursday. The company said it expects fiscal 2018 revenue in the range of $2.515 billion to $2.550 billion, with revenue from the CooperVision segment now projected in the range of $1.87 billion to $1.89 billion.