Cooper Earnings: Lens Market Weakness Amid Macro Challenges, but Cooper's Numbers Show Resilience

Narrow-moat CooperCompanies reported second-quarter earnings with steady results. Total revenue of $1.0 billion was up 6.3% year over year and came largely in line with our expectations, and adjusted earnings per share landed at $0.96, up 13.6% and a bit ahead of our estimates. Management maintained full-year revenue guidance at the midpoint and raised earnings guidance by a low-single-digit percentage; this is inclusive of tariff pressures, which at current levels are expected to result in a $4 million cost of goods sold headwind, or about a 10 basis point gross margin hit. For next fiscal year, tariffs are expected to be a 3% earnings headwind before mitigation actions.