Cooper Companies Abandons CooperSurgical Sale, Stock Plunges 15%
COO is trading near its 52-week low of $58.89 (9.2% below the low) on elevated volume (4.1× avg).
Summary
Cooper Companies ended its strategic review without selling CooperSurgical, a move that had been widely expected to unlock value and create a pure-play contact lens business. The stock fell more than 15% in premarket trading Thursday, making it the worst performer in the S&P 500. This follows Wednesday's fiscal Q3 report, which missed revenue consensus and included a cut to full-year adjusted EPS guidance to $4.51-$4.55 from $4.58-$4.66. The company also said inventory reductions in its CooperVision unit will continue to weigh on results in Q4. The decision to keep the women's health and fertility business removes a key catalyst that had supported the stock, and the market is repricing accordingly.
At the time of this announcement, COO was trading at $53.50 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $58.89 to $89.83. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.