Tallahassee, FL 12/8/11 (StreetBeat) -- Eye care company Cooper Cos. (NYSE:COO) topped expectations with its fiscal fourth-quarter performance, but analysts remain concerned about lingering Food and Drug Administration issues.The Pleasanton, Calif., company said Thursday its profit increased 18 percent in the fiscal fourth quarter as sales of contact lenses improved. The company earned $56.6 million, or $1.15 per share, in the three months ended Oct. 31. Revenue climbed 15 percent to $360.9 million.
The company also forecast a 2012 profit of $4.80 to $5 per share that topped analyst expectations.
Company shares jumped 7 percent, or $4.04, to $62.20 in pre-market trading Friday.
Cooper reported solid results, Jefferies analyst Raj Denhoy said in a Friday morning research note. But the analyst lowered a price target on the stock to $70 from $77 and said he remained sidelined on the stock "given evolving FDA issues."
In October, CooperVision issued its second announcement in two months about the recall of 600,000 Avaira Toric contact lenses linked to pain, red eye and blurred vision by wearers. The company first announced the recall Aug. 19 and said it had focused its efforts on more than 7,000 eye care professionals who sell the lenses.
The FDA also recently issued a warning letter to Cooper with five observations about its lone U.S. distribution facility, Citi analyst Amit Bhalla noted. The analyst also said in a note the agency will perform an upcoming inspection of a Cooper manufacturing location in the United Kingdom that makes a high volume of contact lenses.
"Cooper's contact lens growth continues to outperform the market, but we maintain our Neutral rating as we believe manufacturing issues remain an overhang and should not be casually dismissed," Bhalla wrote.
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