Contact lens maker Cooper Companies Inc. (COO: Quote), Thursday reported a rise in profit for the second quarter, helped mainly by higher revenues and improved margins. Results were also positively impacted by the absence of loss on debt extinguishment that was recored a year ago.
Pleasanton, California-based Cooper lowered its earnings guidance for the full year, and lifted the lower-end of its revenue outlook. Shares of Cooper fell about six percent in extended hours on the news.
Cooper, apart from contact lenses, also develops medical products for women's healthcare market. The company's net sales for the quarter grew 6 percent to $344.6 million from last year. Seven Street analysts on a consensus estimated revenues of $349.94 million for the quarter.
Sales at CooperVision unit were up 5 percent, driven mainly by double-digit growth from multi-focal lenses. CooperSurgical division sales grew 13 percent.
Gross margins for the quarter improved to 64 percent from 62 percent last year, as a result of savings from the closure of the Norfolk manufacturing plant, better efficiencies and favorable product mix.
Cooper's net income for the second quarter improved to $54.9 million or $1.12 per share from $35.4 million or $0.73 per share last year.
On average, nine analysts polled by Thomson Reuters expected earnings of $1.20 per share for the quarter. Analysts' estimates typically exclude special items.
Last year, the company recorded a loss on extinguishment of debt of $16.5 million that was absent this quarter.
Looking forward to the fiscal year 2012, Cooper lowered its earnings guidance to a range of $4.88 to $5.13 per share from its prior estimate of $4.90 to $5.15 per share. The company continues to expect adjusted earnings of $4.90 to $5.15 per share.
Cooper tightened the lower end of its revenue guidance range for the full year 2012. The company now expects total revenues of $1.40 billion to $1.44 billion, compared to prior outlook of $1.385 billion to $1.440 billion.
Analysts currently expect earnings of $5.10 per share on revenues of $1.43 billion for fiscal year 2012.
COO closed Thursday's trading on the NYSE at $80.06, down $2.09 or 2.54%, on a volume of 0.8 million shares. In after hours, the stock further lost $4.88 or 6.10%.
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by RTT Staff Writer
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