Cooper’s price movement
Cooper Companies (COO) has a market cap of $6.9 billion. Its YTD (year-to-date) price movement was a mix of rises and falls in fiscal 2015. After the fiscal 4Q15 earnings report, COO fell by 4.9% to close at $142.05 per share as of December 3, 2015. The price movement on a weekly, monthly, and YTD basis is -2.2%, -6.6%, and -12.3%, respectively.
Currently, Cooper is trading 4.0% below its 20-day moving average, 3.4% below its 50-day moving average, and 15.4% below its 200-day moving average.
The SPDR S&P Health Care Equipment ETF (XHE) invests 1.9% of its holdings in Cooper. The ETF tracks an equal-weighted index of US health care equipment and supplies companies. The YTD price movement of XHE is 10.6% as of December 2, 2015. The SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 1.0% of its holdings in Cooper.
The competitors of Cooper Companies (COO) and their market caps are:
- Johnson & Johnson (JNJ) — $278.9 billion
- Boston Scientific (BSX) — $24.3 billion
- Hologic (HOLX) — $11.1 billion
Performance of Cooper Companies in fiscal 4Q15 and fiscal 2015
Cooper reported fiscal 4Q15 net sales of $455.5 million, a fall of 2.7% when compared to net sales of $468.0 million in fiscal 4Q14. The company’s cost of sales as a percentage of sales rose by 10.0% while its gross profit margin fell by 6.8% in fiscal 4Q15 as compared to the prior year period.
Net income and EPS (earnings per share) rose to $36.7 million and $0.75, respectively, in fiscal 4Q15, as compared to net income and EPS of $30.8 million and $0.63, respectively, in fiscal 4Q14. Cooper’s non-GAAP (generally accepted accounting principles) EPS rose to $2.00 in fiscal 4Q15, a rise of 2.6% as compared to the prior year period.
On August 10, 2015, Cooper Surgical, a unit of Cooper Companies, acquired Reprogenetics. This acquisition is valued at ~$46.5 million and is expected to be neutral to fiscal 2015 and 2016 EPS and accretive after that, excluding one-time charges and deal-related amortization.
In October 2015, the company repurchased $51.3 million of common stock under its share repurchase program for an average share price of $139.6.
Fiscal 2015 results
In fiscal 2015, the company reported net sales of $1,797.1 million, a rise of 4.6% YoY (year-over-year). The company’s gross profit margin and operating income fell by 6.3% and 22.8%, respectively, in fiscal 2015.
Also, its net income and EPS fell to $203.5 million and $4.14, respectively, in fiscal 2015, as compared to net income and EPS of $269.9 million and $5.51, respectively, in fiscal 2014. Its non-GAAP EPS rose to $7.44 in fiscal 2015, a rise of 2.1% YoY.
Meanwhile, Cooper’s cash and cash equivalents fell by 34.9% while its inventories rose by 10.0%. The company’s current ratio and debt-to-equity ratio fell to 1.5 and 0.66, respectively, in fiscal 2015, as compared to a current ratio of 1.8 and a debt-to-equity ratio of 0.72 in fiscal 2014. It reported an adjusted free cash flow of $216.4 million in fiscal 2015.
The company has projected the following for fiscal 1Q16:
- total revenue in the range of $435.0 to $447.0 million
- non-GAAP EPS in the range of $1.52 to $1.62
Additionally, Cooper expects the following for fiscal 2016:
- total revenue in the range of $1,834.0 to $1,874.0 million
- non-GAAP EPS in the range of $7.60 to $7.90
Non-GAAP EPS represents pro forma growth of 10% to 14%, including the forecast negative impact from foreign currency of $0.58 per share for fiscal 2016.