SAN RAMON, Calif.—CooperCompanies (NYSE: COO) on Thursday reported that its third-quarter sales increased 32 percent (28 percent in constant currency) year-over-year to $763.4 million, driven by sales gains in both of its business segments. In the CooperVision (CVI) segment, which includes contact lenses, revenue rose 24 percent (20 percent at constant currency) to $557.5 million. In the CooperSurgical (CSI) segment, revenue increased 60 percent to $205.9 million in the third quarter, which ended July 31, 2021.

“I am pleased to report another strong quarter with record revenues at both CooperVision and CooperSurgical driving record earnings and robust free cash flow,” Al White, Cooper's president and chief executive officer, said in the announcement. “Our businesses continue to execute at a very high level and we look forward to continued success driven by our daily silicone hydrogel portfolio, our success within myopia management and continuing strength in fertility."
The company reported that cash provided by operations totaled $223.8 million, offset by capital expenditures of $43.6 million, which resulted in free cash flow of $180.2 million. On the bottom line, GAAP diluted earnings per share totaled $12.37, an increase over the year-ago EPS total of $11.25.
Cooper also noted that its gross margin of 68 percent surpassed the year-ago gross margin rate of 62 percent. On a non-GAAP basis, gross margin was 68 percent, an increase  from 66 percent last year, and the increase was driven “primarily by favorable product mix,” the announcement noted.
For the CVI contact lens business unit, the toric segment (the largest individual CL category at CVI) saw a 23 percent increase in sales in the third quarter to $181 million (or 32 percent of overall CVI revenue in the period). The increase was 19 percent at constant currency.
The second-largest segment, single-use sphere, reported revenue of $159.3 million, an increase of 26 percent (21 percent at constant currency). The non single-use sphere category achieved total sales of $155.6 million, an increase of 21 percent (17 percent at constant currency).

Sales of multifocal contact lenses in the third quarter totaled $61.6 million (11 percent of the overall contact lens business), an increase of 31 percent.
The company also updated its financial guidance for fiscal 2021. It now expects fiscal 2021 total revenue in the range of $2,893 to $2,923 million, with the CVI segment revised to revenue in a range of $2,127 to $2,147 million. The company expects 2021 non-GAAP diluted EPS in the range of $13.20 to $13.40