Cooper Companies Inc. (COO), which makes contact lenses and surgical instruments for gynecologists and obstetricians, said Tuesday after the markets closed that its fourth quarter profit rose a modest 2% from last year, as lower margins partially offset a 6% revenue growth.
The Pleasanton, California-based company GAAP net income for the fourth quarter of $30.1 million or $0.66 per share, compared to $29.5 million or $0.65 per share for the year-ago quarter.
Excluding $0.9 million or $0.01 per share of charges for manufacturing restructuring at the company's contact lens unit CooperVision, non-GAAP earnings for the latest quarter was $0.67 per share.
In August, Cooper said its CooperVision unit will close its soft contact lens plant in Norfolk, Virginia, citing efficiencies achieved over the last year, cut 570 jobs and take related charges.
On average, 8 analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Gross margin for the quarter fell to 56% from 61% a year ago mainly due to currency fluctuations as well as inventory and equipment write-offs, while operating margin declined to 15% from 18% last year.
Revenue for the fourth quarter increased 6% to $283.46 million from $266.84 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $278.58 million for the fourth quarter.
For the fourth quarter, revenue for the company's CooperVision unit rose 8% year-over-year to $239.6 million, while revenue for its CooperSurgical unit fell 2% to $43.9 million.
For the fiscal year 2009, the company reported GAAP net income of $100.5 million or $2.21 per share, compared to $65.5 million or $1.43 per share for the fiscal year 2008. Non-GAAP earnings for the fiscal year 2009 was 2.29 per share.
Revenue for the fiscal year 2009 increased 3% to a record $1.08 billion from $1.05 billion in the prior year.
Analysts expected the company to earn $2.28 per share on revenue of $1.08 billion for the fiscal year 2009.
Looking forward to fiscal 2010, the company expects revenue of $1.10 billion to $1.16 billion, GAAP earnings of $2.17 to $2.27 per share and non-GAAP earnings of $2.45 to $2.55 per share. Analysts currently expect the company to earn $2.45 per share on revenue of $1.13 billion for the fiscal year 2010.
Cooper share, which have traded in a range of $11.97 to $35.13 over the past year, closed Tuesday's regular trading session at $33.92, unchanged from previous close. The stock is currently losing 22 cents in after hours trading.
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