Market watchers had a bearish view for MedTech stocks ahead of the first-quarter earnings season, thanks to the ongoing geopolitical discord across the globe with major complications arising from the Middle-East conflicts. Security threats around the Red Sea were alarming through the months of the first quarter, leading to a significant rise in freight costs and shipping times. Added to this, healthcare labor shortages continued to act as a major business disruptor.While these remarkably reduced the gross a ...

Alcon, Inc. (ALC) delivered core earnings per share (EPS) of 78 cents in the first quarter of 2024, up 11% from the year-ago quarter’s figure (up 21% at the constant exchange rate or CER). The figure topped the Zacks Consensus Estimate by 8.3%. Alcon’s ‘core’ results are based on non-IFRS (International Financial Reporting Standards) measures.In the first quarter, the company’s diluted EPS was 50 cents, up 43% year over year.Revenues in DetailAlcon’s net sales to third parties in the first quarter were $2.4 ...

Financial Data and Key Metrics Changes - Company reported Q1 2024 sales of $2.4 billion, a 7% increase year-over-year, with core diluted earnings rising 21% to $0.78 per share and core operating margin expanding to 22% [7][20][24] - Core gross margin for Q1 was 63.4%, consistent with the previous year, while core operating margin improved by 260 basis points year-over-year [23][24] - Free cash flow for the quarter was $229 million, a significant improvement from an outflow of $19 million in the same quarter last year [24] Business Line Data and Key Metrics Changes - Surgical franchise revenue increased by 6% year-over-year to $1.3 billion, with implantables sales also up 6% to $433 million, driven by advanced technology intraocular lenses [20][21] - Vision Care sales reached $1.1 billion, up 10%, with contact lens sales growing 11% to $671 million, supported by innovations in toric and multifocal modalities [21][22] - Ocular Health sales were $435 million, an 8% increase year-over-year, driven by the sustained family of artificial tears, which saw double-digit growth [21][22] Market Data and Key Metrics Changes - Global cataract procedures were estimated to be up approximately 2%, while the retail contact lens market grew by about 7%, driven by pricing and steady wearer trade-up [18] - In China, the company experienced low-teens growth, primarily in consumables and refractive equipment, ahead of the Volume Based Procurement (VBP) rollout [66] Company Strategy and Development Direction - The company is focused on launching the UNITY VCS phaco machine, expected to receive FDA approval soon, which aims to improve performance and efficiency in cataract and vitrectomy surgeries [8][9] - Plans to acquire Belkin Vision and its Eagle device are in place, which will enhance the company's glaucoma treatment portfolio [18][42] - Continued investment in contact lens innovation and manufacturing capacity is a priority, with six new contact lens platforms launched since 2020 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong in-market performance and a robust product pipeline, anticipating continued growth in sales and operating leverage [28] - The company maintains full-year top-line guidance of $9.9 billion to $10.1 billion, with constant currency sales growth guidance increased to 7% to 9% [25][27] - Management acknowledged foreign exchange pressures but remains confident in achieving core diluted earnings guidance of $3 to $3.10 per share, reflecting 15% to 18% constant currency growth over 2023 [27] Other Important Information - The company is preparing a new drug application for its dry eye pharmaceutical candidate, AR-15512, expected to be submitted in the coming months [17] - The sustained family of artificial tears has shown strong growth, with significant potential for further expansion in the U.S. market [16][70] Q&A Session Summary Question: Expectations around UNITY launch and PowerVision timelines - Management expects UNITY to be approved in the next couple of months, with a careful launch planned for next year, while PowerVision data is anticipated late this year [31][32] Question: U.S. ATI wells penetration and competitive environment - Management noted that the U.S. market was slightly soft, but they gained share in monofocal and PCIOLs, with strong international performance [36][37] Question: Belkin Vision integration and consumables pricing - Management sees SLT as a key part of the glaucoma treatment portfolio, with no additional clinical studies anticipated for Belkin [42][46] Question: Constant currency revenue guidance drivers - The growth in contact lenses is a significant driver of the constant currency revenue guidance, with international markets performing well [38][40] Question: China VBP opportunity and its impact - Management indicated that the VBP rollout will ramp up through the back half of the year, with a full-year effect expected next year [75][76]

Alcon (ALC) reported $2.44 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 4.8%. EPS of $0.78 for the same period compares to $0.70 a year ago.The reported revenue represents a surprise of -0.64% over the Zacks Consensus Estimate of $2.46 billion. With the consensus EPS estimate being $0.72, the EPS surprise was +8.33%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Among the medical sector, Alcon (ALC)  and Prestige Consumer Healthcare (PBH)  are two intriguing stocks to buy for growth as their quarterly results approach on Tuesday, May 14.Alcon stands out as a provider of a full suite of eye care products while Prestige distributes over-the-counter (OTC) healthcare and household cleaning products. Let’s take a look at their expansion and get a better gauge as to why now is a good time to buy Alcon and Prestige’s stock.Alcon Preview Alcon primarily provides ophthalmic ...

Earnings Estimate Revisions - Alcon Inc (ALC) is seeing favorable earnings estimate revisions, which is a precursor to a potential earnings beat [1] - The Most Accurate Estimate for the current quarter is 74 cents per share, compared to the Zacks Consensus Estimate of 72 cents per share [1] - This results in a Zacks Earnings ESP of +2.57% for ALC heading into earnings season [1] Importance of Positive Earnings ESP - A positive Zacks Earnings ESP has historically been powerful in producing positive surprises and outperforming the market [2] - Stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better show a positive surprise nearly 70% of the time [2] - These stocks have returned over 28% on average in annual returns [2] Alcon's Position - ALC has a Zacks Rank 2 (Buy) and a positive Earnings ESP, making it a potential candidate for consideration ahead of earnings [2] - Recent earnings estimate revisions suggest positive prospects for Alcon and a potential earnings beat in the upcoming report [2]

Key PointsSTAAR Surgical is the leading maker of implantable ocular lenses (IOL) used for cataract surgery.Its EVO ICL sales hit the highest levels in the United States in Q1 2024 since its FDA approval in March 2022.With over 90% of people over 65 years of age developing cataracts, STAAR Surgical has a long runway for growth from the aging population.5 stocks we like better than STAAR SurgicalSTAAR Surgical Co. NASDAQ: STAA develops and manufactures intraocular lenses (IOL) used to replace a person's natur ...

Alcon (ALC) is likely to grow in the coming quarters, backed by the flourishing Surgical business with its diversified portfolio and innovative technologies. Strength in the Vision Care business will further fuel growth. Strong, stable solvency also appears encouraging. Meanwhile, headwinds, such as macroeconomic impacts and the fiercely competitive industry, remain concerns for Alcon’s operations.  In the past year, this Zacks Rank #3 (Hold) stock has increased 17.7% compared with the 9.7% rise of the indu ...

Alcon’s (ALC) AcrySof IQ Vivity and Clareon Vivity extended depth of focus (EDOF) intraocular lenses (IOLs) have recently surpassed more than one million implants worldwide. The company’s revolutionary presbyopia-correcting intraocular lens (PCIOL) option has expanded the patient candidacy pool by addressing the diverse vision needs of patients who desire less dependency on glasses post-surgery and low visual disturbances.The recent development will strongly boost the company’s Surgical business, which offe ...

FORT WORTH, Texas--(BUSINESS WIRE)--Alcon (SIX/NYSE: ALC), the global leader in eye care dedicated to helping people see brilliantly, today proudly announces AcrySof® IQ Vivity® and Clareon® Vivity extended depth of focus (EDOF) intraocular lenses (IOLs) have surpassed more than one million implants worldwide. Vivity is the most implanted EDOF IOL globally.1* Alcon is the global leader in IOLs—every four seconds an eye is implanted with an Alcon IOL—and continues to innovate in this space to address patient ...