tanked early Tuesday after the contact lens company lowered guidance for the fourth quarter and the next two fiscal years, citing currency translation and demand issues.
Cooper expects to earn 83 cents to 86 cents a share on sales of $219 million to $222 million in the current quarter, down from previous guidance of 96 cents to 99 cents a share on sales of $238 million to $242 million. Analysts were forecasting earnings of 97 cents a share on sales of $235.8 million, according to Thomson.
The guidance reflects "a lower U.S. dollar conversion rate than that used in previous guidance, as well as softness in sales in the U.S. of its spherical soft contact lenses that are discarded after two weeks of daily wear and the inability of some customers in southeastern U.S. to receive fiscal fourth quarter shipments due to operational difficulties associated with recent weather conditions," Cooper said.
For the year ending in October 2006, Cooper expects to earn $3.60 to $3.70 a share on sales of $933 million to $946 million, down from its old estimate of $4 to $4.10 a share on sales of $983 million to $998 million. Analysts had been calling for earnings of $4.03 a share on sales of $982.9 million.
For the year ending in October 2007, Cooper expects to earn $4.30 to $4.40 a share on sales of $1.045 billion to $1.060 billion, down from its old guidance for earnings of $4.75 to $4.85 a share on sales of $1.097 billion to $1.117 billion. Analysts were calling for earnings of $4.80 a share on sales of $1.10 billion.
The company lowered its sales estimate for its CooperVision unit for 2006 to $810 million to $820 million, from $863 million to $875 million. For 2006, it cut the estimate to $910 million to $920 million, from $965 million from $980 million.
"Our new CooperVision estimates in 2006 and 2007 reflect a low double-digit organic constant currency growth assumption. This is supported by our R&D pipeline, which we expect will deliver 11 new products in 2006 and 2007, expanded manufacturing capacity for single-use lenses that will begin to come on stream at the end of this calendar year and the anticipated growth in our business in the Asia Pacific region," Cooper said.
"While we are presently in production and remain on track to launch our second generation silicone hydrogel lens in Europe in December and expect a U.S. launch in the middle of 2006, limited manufacturing capacity in 2006 will constrain revenue. I expect that by 2007, our silicone hydrogel capacity will be more adequate and cost effective," Cooper CEO A. Thomas Bender said.
The stock fell $6.57, or 10.1%, to $58.25.