The Cooper Companies, Inc., NYSE:COO has been upgraded at HCM www.heffcap.com to a strong buy, Shayne Heffernan issued a price target of $96 in 2012. The maker of contact lenses and medical devices boosted its earnings forecast for 2011 to as much as $4.25 a share, topping an earlier prediction of no more than $4.15 and beating the average analyst estimate of $4.14.

Revenue for the period increased 19% to $351.39 million from $295.64 million in the comparable quarter last year, while seven Wall Street analysts expected revenues of $331.82 million.

Looking forward, for the fourth quarter, the company expects GAAP earnings to be in the range of $1.21 per share to $1.26 per share and non-GAAP earnings of $1.19 per share to $1.24 per share. Total revenue is expected to be $350 million to $365 million.

Analysts currently expect earnings of $1.19 per share on revenues of $346.09 million for the fourth quarter.

Valuation Ratios

CompanyIndustrySectorS&P 500
P/E Ratio (TTM)21.1036.4525.0115.62
P/E High - Last 5 Yrs.40.1229.3851.2399.77
P/E Low - Last 5 Yrs.11.5417.0416.3212.70
Beta1.090.410.491.21
Price to Sales (TTM)2.883.472.222.15
Price to Book (MRQ)1.951.362.573.08
Price to Tangible Book (MRQ)8.732.064.744.85
Price to Cash Flow (TTM)13.4824.6315.1910.30
Price to Free Cash Flow (TTM)20.224.3411.1240.90
% Owned Institutions----

Dividends

CompanyIndustrySectorS&P 500
Dividend Yield0.081.741.952.12
Dividend Yield - 5 Year Avg.-1.571.402.40
Dividend 5 Year Growth Rate0.009.898.80-2.02
Payout Ratio(TTM)1.6645.1370.2031.68

Growth Rates

CompanyIndustrySectorS&P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago12.4615.527.3012.53
Sales (TTM) vs TTM 1 Yr. Ago9.7713.436.8510.47
Sales - 5 Yr. Growth Rate7.5111.209.797.81
EPS (MRQ) vs Qtr. 1 Yr. Ago662.7740.3556.368.04
EPS (TTM) vs TTM 1 Yr. Ago112.96---
EPS - 5 Yr. Growth Rate3.5210.339.296.59
Capital Spending - 5 Yr. Growth Rate-8.8317.4410.623.92

Financial Strength

CompanyIndustrySectorS&P 500
Quick Ratio (MRQ)1.400.880.620.75
Current Ratio (MRQ)2.611.100.881.10
LT Debt to Equity (MRQ)28.9517.0020.71112.63
Total Debt to Equity (MRQ)30.5621.2530.12152.79
Interest Coverage (TTM)2.980.880.5822.84

Profitability Ratios

CompanyIndustrySectorS&P 500
Gross Margin (TTM)60.4355.5735.3734.54
Gross Margin - 5 Yr. Avg.57.5549.7336.1533.09
EBITD Margin (TTM)24.86---
EBITD - 5 Yr. Avg19.8915.3913.8020.60
Operating Margin (TTM)17.2513.038.43-
Operating Margin - 5 Yr. Avg.11.7411.6010.6015.63
Pre-Tax Margin (TTM)15.0212.998.5615.31
Pre-Tax Margin - 5 Yr. Avg.7.6511.5610.6315.18
Net Profit Margin (TTM)13.739.426.1511.54
Net Profit Margin - 5 Yr. Avg.6.568.687.3011.27
Effective Tax Rate (TTM)8.5630.7927.5322.16
Effecitve Tax Rate - 5 Yr. Avg.14.2825.5129.9724.93

Efficiency

CompanyIndustrySectorS&P 500
Revenue/Employee (TTM)180,51723,307,62838,340,485748,374
Net Income/Employee (TTM)24,7911,483,7471,194,754100,795
Receivable Turnover (TTM)6.494.4635.029.31
Inventory Turnover (TTM)1.992.596.098.31
Asset Turnover (TTM)0.480.570.810.62

Management Effectiveness

CompanyIndustrySectorS&P 500
Return on Assets (TTM)6.573.344.217.15
Return on Assets - 5 Yr. Avg.2.6812.218.266.32
Return on Investment (TTM)7.144.787.129.35
Return on Investment - 5 Yr. Avg.2.9822.3214.348.37
Return on Equity (TTM)10.066.6610.3724.70
Return on Equity - 5 Yr. Avg.4.6029.5118.6020.55

For fiscal year 2011, the company said it now cut its GAAP net income to a range of $3.67 to $3.72 per share, compared to its previous forecast range of $3.90 to $4.05. Non-GAAP net income per share has been raised to a range of $4.20 to $4.25, compared to its earlier estimates in the range of $4.00 to $4.15.

Revenue for the year is now forecast to range from $1.32 billion to $1.34 billion, compared to its previous range of $1.28 billion to $1.30 billion.

The Cooper Companies, Inc. (Cooper) is a global medical products company that serves the specialty healthcare market through its two business units, CooperVision, Inc. (CVI) and CooperSurgical, Inc. (CSI). CVI develops, manufactures and markets a range of contact lenses for the global vision correction market. CVI specializes in lenses for astigmatism, presbyopia and ocular dryness. CVI is a manufacturer of toric lenses, which correct astigmatism, multifocal lenses for presbyopia (blurring near vision due to advancing age) and spherical lenses that correct the common visual defects. CVI's products are manufactured at its facilities located in the United Kingdom, Puerto Rico and New York. CVI distributes products from Rochester, New York, Fareham, the United Kingdom, Liege, Belgium, and smaller international distribution facilities. CSI develops, manufactures and markets medical devices, diagnostic products and surgical instruments and accessories used by gynecologists and obstetricians. CSI's manufacturing and distribution facilities are located in Trumbull, Connecticut, Pasadena, California, Stafford, Texas, and Berlin, Germany.

Coopervision

CVI offers spherical, aspherical, toric, multifocal and toric multifocal lens products in all modalities. CVI lenses have a round to partial round edge. Cooper's Proclear line of spherical, toric and multifocal lenses are manufactured with omafilcon A, a material that incorporates Phosphorylcholine (PC) Technology that helps enhance tissue-device compatibility. Mild discomfort relating to dryness during lens wear is a condition that often causes patients to discontinue contact lens wear. CVI has the third generation of silicone hydrogel spherical contact lens products under its brands Biofinity and Avaira in the United States, Europe and Asia Pacific, excluding Japan. It also provides monthly silicone hydrogel toric lens under the Biofinity brand. During fiscal year ended October 31, 2010, it launched two silicone hydrogel lenses: the Biofinity multifocal lens and the Avaira toric lens.

The Company competes with Johnson & Johnson Vision Care, Inc. and Bausch & Lomb Incorporated.

Coopersurgical

CSI participates in the market for women's healthcare with its product lines of over 600 products. These products are in three categories: endocervical curettage (ob/gyn) medical offices, surgical procedures, including hospitals, clinics and surgical centers, and fertility.

The Company competes with Johnson & Johnson's Ethicon Endo-Surgery and Ethicon Women's Health and Urology companies, Boston Scientific, Gyrus ACMI and Covidien.

 

 

 

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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