Is Cooper Companies (COO) Poised For Earnings Beat In Q4?
Zacks Investment Research | Dec 06, 2016 09:18PM ET
The Cooper Companies Inc. (NYSE:COO) is set to report fourth-quarter fiscal 2016 results after the market closes on Dec 8.
Last quarter, the company posted a positive earnings surprise of 0.9%. Let’s see how things are shaping up for this announcement. The company boasts a solid earnings track record, having beaten estimates in three of the trailing four quarters. The average earnings surprise over the last four quarters is a positive 4.68%.
We expect the company to post an earnings beat again in the soon-to-be-reported quarter.
COOPER COS Price and EPS Surprise
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The combination of Cooper Companies’ favorable Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
We believe strength at the CooperSurgical segment, driven by the expanding presence in the fertility segment, will drive top-line growth. The company’s focus on genetic testing will also continue to drive growth in our view. We note that Cooper Companies posted a positive earnings surprise of 4.68% on average over the last four quarters.
Cooper Companies expects complementary IVF products that were acquired through the takeover of Research Instruments. A small fertility micro-needle company will add to growth in the to-be reported quarter.
We are optimistic about the company’s balanced growth performance across all segments and expect the same to be reflected in the fiscal fourth quarter itself. Results from the EMEA and Asia-Pacific regions are also expected to be strong. However, volatile foreign exchange is likely to hurt the company’s results in the quarter to-be-reported.
Price Movement
Cooper Companies’ stock gained about 22.86% in the last one year, comparing favorably with the Zacks categorized Medical/Dental Supplies industry’s decline of 9.56%. This could have been triggered by the expanding presence of the company through its focus on accretive acquisitions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
Cambrex Corporation (NYSE:CBM) has an Earnings ESP of +1.90% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Quintiles IMS Holdings, Inc. (NYSE:Q) has an Earnings ESP of +0.93% and a Zacks Rank #1.
Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) has an Earnings ESP of +1.16% and a Zacks Rank #2.
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