Shares of Cooper Cos. were on pace to hit a new low Wednesday after the company forecasted a lower than expected profit for the 12 months ending October 2008.
The company’s shares fell 12.3% in pre-market trading and ended the day down 7% market value of about $1.75 billion.
The contact lens maker, which is moving its headquarters from Lake Forest to Pleasanton, said it expected to earn $107.5 million to $118.7 million for the period, excluding stock-based compensation costs.
Wall Street expects Cooper to earn $127.7 million in the 12 months ending October 2008.
For the 12 months ended Oct. 31, Cooper swung to a loss of $11.2 million, compared to a profit of $68.3 million for 2006 period. Revenue rose 11% to $950.6 million.
Analysts expected Cooper to post a profit of $101.7 million and revenue of $946.4 million in the period.
Analyst Lawrence Keusch of Goldman Sachs & Co. downgraded Cooper to “neutral” from “buy” and removed it from a list of recommended stocks.
Keusch said in a report that Cooper’s stock would trade around current levels until investors are convinced the company would be able to report steady profit growth.
“With management having recently articulating an outlook for flat operating margins in 2008 versus 2007, the revised earnings outlook is likely to call into question profitability,even with new products,” Keusch said.
