SAN RAMON, Calif. - CooperCompanies (NASDAQ: COO), a global medical device company, announced a better-than-expected adjusted second-quarter earnings per share (EPS) of $0.85, exceeding analysts' predictions by $0.02. Revenue for the quarter rose to $942.6 million, a 7% increase year-over-year (YoY), although slightly below the consensus estimate of $948.53 million. The company's stock surged 4.4% following the announcement, signaling a robust market response to the earnings beat and upward revision of its full-year guidance.
The company's President and CEO, Al White, attributed the strong quarter to record revenues and significant operational progress, noting double-digit growth in the CooperVision segment and a solid performance by CooperSurgical despite distribution challenges. White expressed optimism about the company's momentum, leading to increased revenue and earnings guidance for fiscal year 2024.
CooperCompanies now projects fiscal 2024 EPS to range between $3.54 and $3.60, with the midpoint of $3.57 slightly above the analyst consensus of $3.55. The company also raised its revenue outlook to $3.863-3.905 billion, with the midpoint of $3.884 billion closely aligned with the consensus estimate of $3.88 billion.
The second quarter saw CooperVision revenue climb 8% to $635.9 million, driven by strong demand for silicone hydrogel lenses. CooperSurgical reported a 6% increase in revenue to $306.7 million. Gross margin improved to 67% compared to 66% in the prior year's second quarter, and operating margin expanded significantly to 17% from 11%.
The company's financial health remains robust, with $111.0 million in cash provided by operations and $36.9 million in free cash flow after accounting for capital expenditures. Total debt, excluding unamortized debt issuance costs, stood at $2.7 billion, with cash and cash equivalents of $112.4 million.
Investors have responded positively to the earnings beat and the company's confident outlook for the remainder of the fiscal year. The raised guidance indicates management's belief in the company's ability to sustain growth and profitability in the current market environment.
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