Cooper Companies Launches Portfolio Review To 'Unlock Value'

Benzinga12-06 01:19

Cooper Companies (NASDAQ:COO) stock rose Friday after the company reported better-than-expected fourth-quarter earnings and upbeat financial guidance.

The company also said it is conducting a formal review of the company’s portfolio, structure, strategy, operations, and capital priorities.

The review aims to identify opportunities to streamline the business and unlock additional long-term value, including potential partnerships, joint ventures, divestitures, mergers, or other transactions.

Also Read: Activist Investor Drops Scathing Letter, Slams Cooper’s ‘Growth At All Costs’ Approach

CooperCompanies appointed Colleen Jay to succeed current Chair Robert Weiss, effective January 2, 2026.

The company reported fourth-quarter adjusted earnings of $1.15 per share on Thursday, up 11% year over year, beating the consensus of $1.11.

The medical device company reported sales of $1.065 billion, almost in line with the consensus of $1.061 billion.

Sales were up 5% year over year, and 3% organically.

The CooperVision segment, focused on contact lenses, reported sales of $709.6 million, up 5% from last year’s fourth quarter, up 3% in constant currency, up 3% organically.

CooperSurgical, focused on fertility and women’s healthcare, reported revenue of $355.6 million, up 4% from last year’s fourth quarter, up 4% in constant currency, up 4% organically.

Outlook

Cooper Companies expects first quarter 2026 sales of $1.019 billion-$1.030 billion versus the consensus of $1.025 billion, with adjusted earnings of $1.02-$1.04 per share compared to the consensus of $1.00.

The company expects 2026 organic growth of 3%-4%.

The company expects fiscal 2026 adjusted earnings of $4.45-$4.60 per share versus consensus of $4.09, and sales of $4.299 billion-$4.338 billion versus consensus of $4.089 billion.

Fiscal 2026 free cash flow is expected to be $575–$625 million, and the company now projects more than $2.2 billion in free cash flow from fiscal 2026 to fiscal 2028.

Analysts’ Reaction

Needham maintains a Buy rating and raises the price forecast from $94 to $100.

Mizuho maintains with an Outperform and raises the price forecast from $85 to $100.

Baird maintains with an Outperform rating and raises the price forecast from $85 to $98.

JP Morgan maintains Cooper Companies with a Neutral rating and raises the price forecast from $66 to $78.

Wells Fargo maintains the company’s Equal-Weight rating and raises the price forecast from $72 to $82.

COO Price Action: Cooper Companies shares were up 7.24% at $82.61 at the time of publication on Friday, according to Benzinga Pro data.

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Photo by T. Schneider via Shutterstock

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