Cooper: A Growing Play On Eye Care

For investors who want to play any trends in eye health, pure plays are few and far between. Most are either small divisions of huge companies (Novartis' (NYSE:NVS) Ciba Vision), private (Bausch & Lomb), very small (ISTA Pharmaceuticals (Nasdaq:ISTA)), or not really involved in the medical side (Luxottica (NYSE:LUX)). That makes Cooper Companies (NYSE:COO) a pretty rare company, and the fact that it grows is a cherry on top of the sundae. 

A Strong End to the Year
Cooper posted a solid finish to its 2010 fiscal year. Revenue rose 11% to $313 million, surpassing the high end of what was a surprisingly tight range of estimates. The company's vision business (which is about 85% of the total) saw revenue growth of 10%, fueled at least in part by 88% growth in silicon hydrogel lenses. Its other business, surgical tools for the ob/gyn market, saw 14% reported growth.

Cooper also did a fine job with respect to generating profits. Gross margin improved nearly four full points, while operating profits jumped 56% from the year-ago period. Profitability was definitely helped by the surgical business, where segment gross profits jumped about 12 points from the year-ago period and the operating margin was well above the corporate average (28% vs. 21.4%). 


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