CooperCompanies Earnings: Top Line and Margins Maintain Momentum Despite Capacity Constraints

Narrow-moat CooperCompanies reported fiscal second-quarter results above our expectations. Total sales of $943 million were up 7.4% year over year thanks to solid execution across geographies, with every market posting strong organic sales growth. With a backdrop of healthy demand and market outperformance, management raised its full-year guidance for both segments. Its earnings per share outlook is now $3.54-$3.60, up from $3.50-$3.58. After increasing our near-term assumptions and including the time value of money, we've raised our fair value estimate to $88 per share from $86.