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Sometimes it takes more than an earnings beat to make the market happy about a company.
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The stock of medical device specialist Cooper Companies (COO 0.13%) was hurting on the second-to-last trading day of the week. It sank to a 13% loss on the day, following the publication of the company's latest quarterly earnings release. In contrast, the S&P 500 (SNPINDEX: ^GSPC) successfully treaded water, with a 0.3% increase.
Cooper's third quarter of fiscal 2025 saw the company book slightly over $1.06 billion in revenue, representing a year-over-year improvement of 6%. Of its two divisions, the larger one, CooperVision (CVI), matched that percentage increase by contributing more than $718 million to the top line. CooperSurgical's (CSI) sales, meanwhile, rose 4% to almost $342 million.
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That $1.06 billion was broadly in line with the consensus analyst estimate, but the company admitted that it didn't meet its own expectations.
On the bottom line, non-GAAP (generally accepted accounting principles) adjusted net income also headed higher. It came in at a bit over $220 million ($1.10 per share), bettering the year-ago result by 15%. That per-share number was also a shade higher than the $1.06 average estimate of pundits tracking Cooper stock.
It was clear that the market was expecting better. In a post-earnings research update, Piper Sandler analyst Jason Bednar wrote that Cooper's leading division didn't live up to many hopes. According to reports, its organic growth figure was the lowest since the Great Recession.
Cooper proffered guidance for both its current (fourth) quarter and the entirety of fiscal 2025. For the latter period, it's modeling just under $4.08 billion to nearly $4.1 billion in revenue, and adjusted net income of $4.08 to $4.12 per share. The company earned slightly below $3.9 billion on the top line in fiscal 2024, and $3.69 per share for adjusted net income.