03:00 PM EST, 11/27/2024 (MT Newswires) -- Cooper (COO) is expected to exceed consensus estimates for both revenue and earnings per share in fiscal Q4 but its fiscal 2025 guidance may fall short of expectations due to worsening currency conditions, Needham said in an earnings preview on Wednesday.

Cooper's fiscal Q4 earnings are scheduled for Dec. 5.

The company has strong fundamentals and exposure to attractive markets, such as contact lenses and fertility solutions, but these strengths are insufficient for upside to consensus estimates to justify significant price-to-earnings multiple expansion, Needham said.

Cooper's MiSight portfolio is expected to drive growth in myopia management and CooperSurgical's fertility segment is expected to remain strong even in a recessionary environment due to low demand elasticity, Needham added.

The acquisition of Cook Medical assets is expected to sustain CooperSurgical's 5% to 7% growth trajectory. Still, it may slow the company's ability to pay down debt and reduce interest expenses in the near term, according to the note.

Needham has a hold rating on Cooper's stock.

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