Optical absorption and transverse Kerr effect spectra, resistivity, and magnetoresistance of La 1Ϫx Sr x CoO 3 (xϭ0.15,0.25,0.35) films have been studied. The temperature dependences of the optical and magneto-optical properties of the films exhibit features which can be attributed to the transition of the Co 3ϩ ions from the low-spin state (Sϭ0) to the intermediate-spin state (Sϭ1) and to orbital ordering of the Co 3ϩ ions in the latter state. The evolution of the properties influenced by doping with Sr is interpreted on the basis of the phase separation model.