NEW YORK (TheStreet) -- Cooper Companies (COO) shares are down -1.2% to $129.50 in after-hours trading following the release of its second quarter earnings results after the closing bell on Thursday.
The company reported a 7% year over year quarterly increase in sales to $412.3 million, slightly ahead of analysts consensus $412 million estimates.
The company also reported net income of $79.2 million, or $1.62 per diluted share, 2 cents better than analysts exceptions.
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The company raised the low end of its full year guidance to between $6.80 - $7 from $6.75 - $7.
TheStreet Ratings team rates COOPER COMPANIES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate COOPER COMPANIES INC (COO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- COO's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for COOPER COMPANIES INC is currently very high, coming in at 70.82%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.73% is above that of the industry average.
- Net operating cash flow has increased to $68.57 million or 43.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.62%.
- COOPER COMPANIES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COOPER COMPANIES INC increased its bottom line by earning $5.96 versus $5.06 in the prior year. This year, the market expects an improvement in earnings ($6.84 versus $5.96).
- COO's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: COO Ratings Report