Contact lens maker The Cooper Companies ( NYSE: COO ) added ~6% in the morning hours Friday, marking the biggest intraday gain since November after reporting better-than-expected financials and lifting its fiscal 2023 guidance.
The San Ramon, California-based medical device maker reported $858.5M revenue for Q1 fiscal 2023 with ~9% YoY growth as its CooperSurgical, and CooperVision segments added $277.2M and $581.3M to the topline with ~23% YoY and ~4% YoY rise, respectively.
"We started the year on a positive note with double-digit organic revenue growth and strong operational performances at both CooperVision and CooperSurgical," Chief Executive Al White said.
The U.S. led the topline growth adding $241.4M revenue with ~12% YoY growth, while revenue from the EMEA region held steady at $214.4M.
Meanwhile, net income fell ~11% YoY as operation margin stayed constant at 17% from the prior-year quarter, while gross margin slipped 100bps to ~65% and SG&A expenses rose ~4% YoY to $330.7M.
The company updated its FY23 guidance for revenue and adjusted diluted earnings per share, indicating 7% – 9% organic growth and $12.60 - $12.90 from 6% – 8% and $12.30 - $12.60 issued in December, respectively.
The management attributed the guidance raise to better-than-expected Q1 financials, improved operational performance, and modestly favorable forex rates. The guidance does not account for the COO’s pending acquisition of Cook Medical’s reproductive health business.
Read: Seeking Alpha contributor Daniel Jones argued in December that if Cooper Companies ( COO ) “can hit guidance, then it may very well make for a decent prospect.”
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The Cooper Companies jumps after raising FY23 outlook