CooperCompanies Announces First Quarter 2025 Results

SAN RAMON, Calif., March 06, 2025 (GLOBE NEWSWIRE) — CooperCompanies (NASDAQ:COO), a leading global medical device company, today announced financial results for its fiscal first quarter ended January 31, 2025.

• Revenue increased 4% year-over-year to $964.7 million. CooperVision (CVI) revenue up 4% to $646.1 million, and CooperSurgical (CSI) revenue up 3% to $318.6 million.
• GAAP diluted earnings per share (EPS) of $0.52, up $0.11 from last year’s first quarter.
• Non-GAAP diluted EPS of $0.92, up $0.07 from last year’s first quarter. See “Reconciliation of Selected GAAP Results to Non-GAAP Results” below.

Commenting on the results, Al White, Cooper’s President and CEO said, “We started the year on a positive note meeting our revenue expectations and exceeding our operational targets. Moving forward, we remain confident in our ability to deliver strong growth and operational excellence, and this is reflected in our guidance.”

First Quarter Operating Results

• Revenue of $964.7 million, up 4% from last year’s first quarter, up 5% in constant currency, up 5% organically.
• Gross margin of 68% compared with 67% in last year’s first quarter driven by efficiency gains and mix. On a non-GAAP basis, gross margin was 69%, up from 67% last year.
• Operating margin of 19% compared with 16% in last year’s first quarter driven by stronger gross margins and targeted G&A expense leverage. On a non-GAAP basis, operating margin was 25%, up from 24% last year.
• Interest expense of $26.0 million compared with $29.9 million in last year’s first quarter driven by lower interest rates and lower average debt. On a non-GAAP basis, interest expense was $25.3 million, down from $28.6 million.
• Cash provided by operations of $190.6 million offset by capital expenditures of $89.4 million resulted in free cash flow of $101.2 million.

First Quarter CooperVision (CVI) Revenue

• Revenue of $646.1 million, up 4% from last year’s first quarter, up 6% in constant currency, up 6% organically.
• Revenue by category:

• Revenue by geography:

First Quarter CooperSurgical (CSI) Revenue

• Revenue of $318.6 million, up 3% from last year’s first quarter, up 4% in constant currency, up 2% organically.

• Revenue by category:

Fiscal Year 2025 Financial Guidance

The Company updated its fiscal year 2025 financial guidance. Details are summarized as follows:

• Fiscal 2025 total revenue of $4,080 – $4,158 million (organic growth of 6% to 8%)
  • CVI revenue of $2,733 – $2,786 million (organic growth of 6.5% to 8.5%)
  • CSI revenue of $1,347 – $1,372 million (organic growth of 4% to 6%)
• Fiscal 2025 non-GAAP diluted EPS of $3.94 – $4.02 (raised from previous guidance of $3.92 – $4.02)

Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.

With respect to the Company’s guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measure. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.

Reconciliation of Selected GAAP Results to Non-GAAP Results

To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period.

We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods.

Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.