The Cooper Companies (COO) Q3 2024 earnings summary

Executive summary

• Achieved first-ever $1 billion revenue quarter in Q3 2024, with net sales of $1,002.8 million, up 8% year-over-year, and net income of $104.7 million, up 23%.

• Double-digit non-GAAP earnings growth, with non-GAAP EPS up 14% to $0.96 and GAAP diluted EPS up 22% to $0.52.

• Growth driven by both CooperVision and CooperSurgical segments, supported by multi-year strategies, innovation, and recent acquisitions.

• Strategic investments in manufacturing, technology, and product launches are driving performance and positioning for future growth.

• A four-for-one stock split was completed in February 2024.

Financial highlights

• Q3 2024 consolidated revenues were $1,002.8 million, up 8% year-over-year; nine-month sales reached $2,877.0 million, up 8%.

• CooperVision revenues were $675.6 million (up 7–10% organic); CooperSurgical revenues were $327.2 million (up 9%, 5% organic).

• Non-GAAP EPS grew 14% to $0.96; consolidated gross margin improved to 66.6% (GAAP 66%).

• Operating margin rose to 25.5% non-GAAP (GAAP 19%); free cash flow was $118–$118.5 million.

• Net debt decreased to $2.5 billion; CapEx was $89 million; cash and equivalents at quarter-end were $109.7 million.

Outlook and guidance

• Fiscal 2024 consolidated revenue guidance raised to $3,892–$3,913 million, up 8–8.5% organically.

• CooperVision FY24 sales expected at $2,606–$2,618 million (9–9.5% organic growth); CooperSurgical at $1,286–$1,294 million (5.5–6.5% organic growth).

• Non-GAAP EPS guidance increased to $3.64–$3.67; Q4 2024 revenue expected at $1,015–$1,036 million, non-GAAP EPS $0.98–$1.01.

• Fiscal 2025 focus on low double-digit constant currency operating income growth and stronger free cash flow.

• Guidance was raised on August 28, 2024.