Contact lens maker Cooper Companies Inc. (COO: Quote) said Thursday after the markets closed that its third quarter profit surged 51% from last year, helped by higher sales and improved margins.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly sales.
At the same time, the company raised its full year revenue and earnings outlooks.
Cooper Companies shares are currently gaining 6.54% in after hours trading after closing the day's regular trading session at $86.03, up $1.40 or 1.65%. The shares trade in a 52-week range of $52.60 to $89.31.
For the third quarter ended July 31, 2012, the Pleasanton, California-based company reported net income of $66.9 million or $1.36 per share, compared to $44.2 million or $0.90 per share for the year-ago quarter.
Excluding items, adjusted net income for the latest was $71.7 million or $1.45 per share.
On average, 9 analysts polled by Thomson Reuters expected the company to earn $1.29 per share for the third quarter. Analysts' estimates typically exclude special items.
Gross margin for the quarter improved to 63% from 58% a year earlier, while operating margin increased to 20% from 15% last year.
Net sales for the third quarter rose 8% to $378.19 million from $351.40 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $367.59 million for the third quarter.
Third quarter revenue for the CooperVision unit, which makes contact lenses, grew 5% to $314.2 million, while it surged 20% to $64.0 million for the CooperSurgical unit, which makes products for the woman's healthcare market.
Cooper Companies mainly competes with Alcon and Bausch & Lomb Inc. in the contact lens market.
During the third quarter, the company repurchased about 321,000 shares of its common stock for $25.0 million.
Also during the quarter, Cooper Companies completed the acquisition of Denmark-based in-vitro fertilization medical device company Origio.
Looking forward to the fourth quarter, the company forecast revenue of $390 million to $400 million, earnings of $1.50 to $1.55 per share. Analysts currently expect the company to earn $1.53 per share on revenue of $388.79 million for the fourth quarter.
For the fiscal year 2012, the company now expects revenue of $1.439 billion to $1.449 billion, earnings of $5.10 to $5.15 per share and adjusted earnings of $5.19 to $5.24 per share. Previously, the company expected revenue of $1.400 billion to $1.440 billion, earnings of $4.88 to $5.13 per share and adjusted earnings of $4.90 to $5.15 per share.
Analysts currently expect the company to earn $5.06 per share on revenue of $1.43 billion for the fiscal year 2012.
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by RTT Staff Writer
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