Cooper Cos. said Wednesday its profit slipped 4 percent in the fiscal third quarter after it recalled some of its Avaira Toric contact lenses and took a one-time charge.
But excluding one-time items, its profit topped analysts' forecasts and its shares rose in extended trading.
Cooper said its net income declined to $38.1 million, or 78 cents per share, from $39.7 million, or 86 cents per share, one year ago. The company said it earned $1.15 per share in the latest quarter if one-time items are excluded. Its revenue jumped 19 percent, to $351.4 million from $295.6 million.
Analysts expected the company to report a profit of $1.08 per share in the quarter ended July 31, on $332.9 million in revenue.
Cooper said its profit margin decreased in the third quarter because it recalled some production lots of Avaira Toric lenses. The company announced the recall on Aug. 19. It also reported a one-time charge of $6.1 million. The charge stemmed from the reversal of a gain related to its acquisition of assets from Asahikasei Aime Co, which supplies the main material used in making Cooper's silicone hydrogel contact lenses.
The company said revenue from its CooperVision business rose 20 percent to $298.3 million, and revenue from the CooperSurgical unit grew 14 percent to $53.1 million.
Cooper raised its fiscal 2011 profit and revenue estimates, primarily because it expects stronger sales from the CooperVision business. It now forecasts an annual adjusted profit of $4.20 to $4.25 per share on $1.32 billion to $1.34 billion in revenue. That includes $1.12 billion to $1.13 billion in revenue from CooperVision, and $203 million to $208 million from CooperSurgical.
Previously the company had called for adjusted profit of $4 to $4.15 per share and $1.28 billion to $1.3 billion in revenue, including $1.08 billion to $1.1 billion from CooperVision and $200 million to $205 million from CooperSurgical.
Analysts expected a profit of $4.15 per share and $1.3 billion in revenue on average.
Cooper said it expects adjusted net income of between $1.19 and $1.24 per share in the fiscal fourth quarter, on $350 million to $365 million in revenue. That includes $300 million to $310 million in revenue from CooperVision and $50 million to $55 million from CooperSurgical.
Analysts are projecting a profit of $1.20 per share and $344.6 million in revenue.
Cooper rose $1.33, or 1.8 percent, to $76.60 in extended trading following the release of the earnings report. They ended the regular session down 7 cents at $75.27.