Cooper Companies posted solid Q3 results with record free cash flow, opting to retain its CooperSurgical unit while navigating inventory-related growth constraints at CooperVision.
Cooper Companies reported record free cash flow and EPS growth but faces near-term inventory reduction headwinds at CooperVision, with flat to 2% organic growth guidance.
The Cooper Companies reported Q3 revenue of $1.066 billion, a 1% increase, alongside record quarterly free cash flow of $273 million. While CooperVision faces temporary headwinds from planned U.S. channel inventory reductions, the company decided to retain its CooperSurgical segment and authorized an additional $1 billion in share repurchases.
The board determined that offers received during the strategic review did not adequately reflect the unit's intrinsic value and long-term potential, opting instead to focus on organic growth and operational leverage.