Healthcare product maker The Cooper Companies Inc. (COO), Thursday said its second quarter profit surged on higher operating margin and lower expenses. Revenues, however, improved only marginally from the year ago period. Cooper also maintained its earnings expectation for fiscal year 2009.
For the second quarter, net income for Cooper jumped to $24.65 million or $0.54 per share from $11.24 million or $0.25 per share in the comparable quarter last year.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimate typically excludes one-time items.
Net sales for the quarter grew 1% to $260.59 million from $259.25 million in the same quarter a year ago. Revenue, however, improved 4% in constant currency. The Street expected sales of $266.86 million for the quarter.
Segment wise, revenue of CooperVision was $217.82 million consistent with last year's second quarter, however, up 4% in constant currency. Revenue from CooperSurgical rose 3% to $42.8 million from the year-earlier quarter.
Sales of products marketed directly to hospitals represent 33% of CSI's total revenue, up from 29% in last year's second quarter.
In the sequentially preceding first quarter, Cooper reported a profit that surged to $23.87 million or $0.53 per share, on revenues that rose 3% to $251.14 million in the comparable quarter last year.
Gross margin for the quarter under review was 57%, compared with 58% in second quarter last year.
Operating income was $41.22 million, compared to operating income of $28.47 million in the prior-year quarter. Operating margin was 16%, up from 11% in the prior year second quarter.
Operating margin of CooperVision was 16% compared with 12% in the year ago second quarter, while that of CooperSurgical was 26%, up from 19% last year.
Selling, general and administrative expenses declined to $93.71 million from $107.53 million in the comparable quarter last year. Interest expense was $10.8 million or 4% of sales, compared to $12.1 million or 5% of sales in the corresponding quarter last year.
For the six-month period, net income of Pleasanton, California-based Cooper surged to $48.52 million or $1.07 per share from $18.12 million or $0.40 per share in the prior-year period.
Net sales for the period increased to $511.74 million from $502.02 million in the year-earlier period.
For fiscal year 2009, Cooper continues to see earnings in the range of $2.16 to $2.36, with revenues expected in the range of $1.03 billion to $1.10 billion. The Street currently estimates earnings of $2.31 per share on revenues of $1.09 billion for the quarter.
COO closed Thursday's regular trading at $29.09, up $0.50 or 1.75%, on a volume of 0.95 million shares. In after-hours, the stock further gained $0.41 or 1.41%, to trade at $29.50. In the last 52-week period, the stock traded in the range of $10.17 to $41.45, on a three-month average volume of 0.82 million shares.
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