Core Insights - Bausch + Lomb reported $1.28 billion in revenue for Q4 2024, a year-over-year increase of 9.1% and a surprise of +1.17% over the Zacks Consensus Estimate of $1.27 billion [1] - The company's EPS for the same period was $0.25, compared to $0.24 a year ago, resulting in an EPS surprise of +4.17% [1] Revenue Breakdown - Vision Care revenues reached $723 million, exceeding the estimated $708.34 million, reflecting a +9.2% change year-over-year [4] - Pharmaceuticals revenues were reported at $326 million, slightly below the estimated $335.50 million, with a year-over-year increase of +6.2% [4] - Product sales totaled $1.28 billion, surpassing the average estimate of $1.26 billion, marking a +9.2% year-over-year change [4] - Surgical revenues amounted to $231 million, exceeding the average estimate of $215.26 million, representing a +13.2% year-over-year increase [4] - Other revenues were reported at $5 million, matching the two-analyst average estimate, with no year-over-year change [4] Stock Performance - Bausch + Lomb shares have returned -4.8% over the past month, contrasting with the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Bausch + Lomb reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing a year-over-year increase from $0.24 per share [1] Group 1: Earnings Performance - The company achieved an earnings surprise of 4.17% for the recent quarter, following a previous surprise of 6.25% [1][2] - Over the last four quarters, Bausch + Lomb has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is $0.16, with projected revenues of $1.17 billion [7] Group 2: Revenue Insights - Bausch + Lomb reported revenues of $1.28 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.17% and increasing from $1.17 billion year-over-year [2] - The company has exceeded consensus revenue estimates four times over the last four quarters [2] Group 3: Stock Performance and Outlook - Bausch + Lomb shares have declined approximately 9.1% since the beginning of the year, contrasting with a 4% gain in the S&P 500 [3] - The current estimate revisions trend for Bausch + Lomb is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 4: Industry Context - The Medical Services industry, to which Bausch + Lomb belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Performance - Fourth-quarter 2024 revenue was $1.280 billion, a 9% increase from $1.173 billion in Q4 2023, with 11% growth on a constant currency basis[5]. - Full-year 2024 revenue reached $4.791 billion, up 16% from $4.146 billion in 2023, with a 17% increase on a constant currency basis[5]. - Product sales for Q4 2024 reached $1,275 million, a 9.1% increase from $1,168 million in Q4 2023[61]. - Total revenues for the twelve months ended December 31, 2024, were $4,791 million, compared to $4,146 million for the same period in 2023, reflecting a 15.6% growth[61]. - Vision Care segment revenue for the three months ended December 31, 2024, was $723 million, reflecting a 9% increase from $662 million in the same period of 2023[71]. - The Pharmaceuticals segment saw a 45% revenue increase for the full year 2024, totaling $1.209 billion, driven by the launch of MIEBO® and the acquisition of XIIDRA®[16]. Profitability Metrics - Adjusted EBITDA for Q4 2024 was $259 million, compared to $231 million in Q4 2023, reflecting a $28 million increase[23]. - Full-year adjusted EBITDA for 2024 was $878 million, an increase of $140 million from $738 million in 2023[23]. - Adjusted EBITDA (non-GAAP) for the twelve months ended December 31, 2024, was $204 million, with total non-GAAP adjustments amounting to $521 million[63]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $860 million, up from $738 million in 2023, representing a 16% increase[69]. - Adjusted net income (non-GAAP) for Q4 2024 was $89 million, or $0.25 per diluted share, compared to $83 million, or $0.24 per diluted share in Q4 2023[63]. Cash Flow and Financial Position - Cash flow from operations for 2024 was $232 million, a significant improvement from a cash flow used in operations of $17 million in 2023[21]. - Cash, cash equivalents, and restricted cash totaled $316 million as of December 31, 2024[27]. Future Guidance and Expectations - The company provided 2025 revenue guidance of $4.950 billion to $5.050 billion, representing a constant currency growth of approximately 5.5% to 7.5%[26]. - The company anticipates its 2025 full-year guidance to reflect growth in key products, including XIIDRA® and MIEBO®[30]. - Future performance may be affected by the successful completion of the separation and the anticipated benefits from recent acquisitions[31]. Operational and Strategic Developments - Bausch + Lomb is in the process of separating from Bausch Health Companies Inc., which may involve transferring equity interests to shareholders[31]. - The company has incurred restructuring and transformation costs related to operational improvements and the separation process, which are expected to fluctuate significantly[45]. - The company is committed to maintaining a strong research and development footprint to enhance its product offerings and market position[29]. Cost and Expense Management - The cost of goods sold for Q4 2024 was $499 million, up from $461 million in Q4 2023, indicating an 8.2% increase[61]. - Total adjusted selling, general and administrative expenses for the twelve months ended December 31, 2024, were $2,000 million, up from $1,650 million in 2023, marking a 21.2% increase[65]. - Research and development expenses for the twelve months ended December 31, 2024, totaled $343 million, compared to $324 million in 2023, marking a 5.9% increase[61]. Risks and Challenges - The company faces risks related to economic conditions, including inflation and interest rates, which could impact revenue and margins[33]. - The company anticipates that future acquisitions may lead to additional amortization of intangible assets, impacting future financial results[51]. Non-GAAP Measures - Adjusted EBITDA (non-GAAP) is used to assess the company's financial performance, focusing on underlying operational results[41]. - The company excludes certain costs from its non-GAAP measures, including asset impairments and acquisition-related costs, to provide a clearer view of operational performance[43]. - Bausch + Lomb's management emphasizes the importance of non-GAAP measures for evaluating performance and setting operational goals[38]. - The company utilized Constant Currency revenue growth to assess performance, indicating that foreign currency fluctuations can obscure underlying business trends[55].

Core Insights - Bausch + Lomb (BLCO) is expected to report quarterly earnings of $0.24 per share, indicating no change from the previous year, with revenues forecasted at $1.27 billion, reflecting a 7.9% year-over-year increase [1] Earnings Estimates - The consensus EPS estimate has been revised 5.8% lower over the last 30 days, indicating a reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts predict 'Revenue- Vision Care' at $708.34 million, suggesting a 7% year-over-year increase [5] - 'Revenue- Pharmaceuticals' is estimated to be $335.50 million, indicating a 9.3% year-over-year increase [5] - 'Revenue- Product sales' is expected to reach $1.26 billion, reflecting a 7.7% year-over-year increase [5] - 'Revenue- Surgical' is forecasted at $215.26 million, indicating a 5.5% increase from the prior year [6] - 'Revenue- Other' is projected to be $5.00 million [6] Stock Performance - Bausch + Lomb shares have shown a return of -5.5% over the past month, contrasting with the Zacks S&P 500 composite's +4.7% change, indicating underperformance [7] - The company holds a Zacks Rank 4 (Sell), suggesting it is expected to lag the overall market performance in the near future [7]

Financial Performance - Revenues for the three months ended September 30, 2024, were $1,196 million, an increase of $189 million, or 19%, compared to $1,007 million in the same period of 2023[231]. - Total revenues for Q3 2024 reached $1,196 million, a 19% increase from $1,007 million in Q3 2023[236]. - Total revenues for the nine months ended September 30, 2024, were $3,511 million, an 18% increase from $2,973 million in the same period of 2023, driven by acquisitions and increased volumes[274]. - Vision Care segment revenue was $2,016 million for the nine months ended September 30, 2024, a 7% increase from $1,881 million in 2023, primarily due to sales from the dry eye portfolio and Lumify[278]. - Pharmaceuticals segment revenue increased to $883 million for the nine months ended September 30, 2024, a 67% rise from $529 million in 2023, driven by the XIIDRA acquisition and the launch of MIEBO[279]. - Surgical segment revenue was $612 million for the nine months ended September 30, 2024, a 9% increase from $563 million in 2023, driven by increased demand for consumables and implantables[282]. Income and Expenses - Operating income for the three months ended September 30, 2024, was $43 million, compared to $40 million in the same period of 2023, reflecting a slight increase[231]. - Net income attributable to Bausch + Lomb Corporation for the three months ended September 30, 2024, was $4 million, a significant improvement from a net loss of $84 million in the same period of 2023[231]. - Selling, general, and administrative expenses rose to $511 million for the three months ended September 30, 2024, up from $418 million in 2023, reflecting an increase of $93 million[231]. - Research and development expenses were $84 million for the three months ended September 30, 2024, slightly up from $82 million in the same period of 2023[231]. - Interest expense increased to $100 million for Q3 2024, up from $76 million in Q3 2023, primarily due to new debt associated with the October 2028 Secured Notes[268]. - Operating income decreased by $6 million, or 7%, to $75 million for the nine months ended September 30, 2024, from $81 million in 2023[291]. Product Development and Launches - The company has a pipeline of approximately 60 projects in various stages of pre-clinical and clinical development, including new contact lenses for myopia and next-generation cataract equipment[199]. - The company launched SiHy Daily, a silicone hydrogel daily disposable contact lens, in over 50 countries and plans to continue its global rollout[201]. - MIEBO, the first FDA-approved treatment for dry eye disease targeting tear evaporation, was launched in the U.S. in September 2023 and approved in Canada in September 2024[202]. - The company acquired XIIDRA, a non-steroid eye drop for dry eye disease, from Novartis in September 2023, enhancing its dry eye franchise[205]. - The acquisition of Trukera Medical in July 2024 is expected to expand the company's presence in the dry eye market with its point-of-care device for measuring tear osmolarity[205]. - The enVista Aspire monofocal and toric IOLs launched in the U.S. in October 2023, with plans for European and Canadian launches in 2025[204]. Market and Competitive Position - The company’s Vision Care segment includes a comprehensive portfolio of contact lenses and consumer eye care products, contributing to its competitive position in the eye health market[193]. - Vision Care segment revenue increased to $684 million in Q3 2024, up 6% from $648 million in Q3 2023, driven by dry eye portfolio sales and SiHy Daily lenses[241]. - Pharmaceuticals segment revenue surged to $306 million in Q3 2024, a 76% increase from $174 million in Q3 2023, primarily due to the XIIDRA acquisition and MIEBO launch[243]. - Surgical segment revenue rose to $206 million in Q3 2024, an 11% increase from $185 million in Q3 2023, attributed to higher demand for consumables and implantables[244]. Debt and Financial Obligations - As of September 30, 2024, the principal amounts outstanding under the May 2027 Term Facility and September 2028 Term Facility were $2,444 million and $495 million, respectively[315]. - The Company issued $1,400 million aggregate principal amount of 8.375% Senior Secured Notes due October 2028, with interest payable semi-annually starting April 1, 2024[325]. - The weighted average stated rate of interest for the Company's outstanding debt obligations as of September 30, 2024, was 8.34%[330]. - The Company expects to make interest payments of approximately $130 million and mandatory debt amortization payments of $8 million for the period October 1, 2024, through December 31, 2024[335]. - The amortization rate for the May 2027 Term Facility is 1.00% per annum, or $25 million, payable in quarterly installments[323]. - The amortization rate for the September 2028 Term Facility is 1.00% per annum, or $5 million, payable in quarterly installments[324]. Risks and Challenges - The company faces risks related to adverse economic conditions, including inflation and potential recession, which could impact revenues and margins[350]. - The introduction of generic and biosimilar competitors poses a risk to the company's branded products and market share[357]. - The company is committed to obtaining and maintaining sufficient intellectual property rights to protect its products from competition[358]. - The impact of geopolitical conflicts, including those in Russia and Ukraine, is being closely monitored as it may affect sales and operations[356]. - The company faces risks related to potential work stoppages, economic factors, and compliance with extensive regulations, which could impact operations and financial performance[359]. - The company must navigate uncertainties in drug development, including the success of clinical trials and regulatory approvals, which could impact the commercialization of its products[359]. Strategic Initiatives - The Company plans to refinance its debt upon full separation and transition to a longer-term capital structure[332]. - The company anticipates continued improvement in operational efficiency and plans to enhance cash and working capital requirements for the remainder of 2024 and beyond[348]. - Expected revenues for the company's products, including XIIDRA, are anticipated to grow, with specific R&D and marketing expenditures outlined[348]. - The company is actively managing challenges post-IPO, including potential conflicts of interest and the complexities of operating as an independent entity[350]. - The company is focused on maintaining strong relationships with healthcare professionals and ensuring favorable formulary status for its products[356].

Financial Data and Key Metrics Changes - Total company revenue for Q3 2024 was $1.196 billion, reflecting a growth of 19% and 10% on an organic basis [17][18] - Adjusted gross margin for Q3 was 63%, up 170 basis points compared to Q3 2023, driven by a transition to higher-margin products [28] - Adjusted EBITDA, excluding acquired IP R&D, was $227 million, representing 21% growth versus Q3 2023 [30] Business Line Data and Key Metrics Changes - Vision Care segment revenue was $684 million, increasing by 6%, with notable growth in the consumer dry eye portfolio, which delivered $93 million in revenue, representing 19% growth [19][20] - Surgical segment revenue was $206 million, an increase of 12%, with consumables growing by 14% and premium IOLs up 23% [23][24] - Pharma segment revenue was $306 million, representing growth of 76% and organic growth of 25%, with Miebo delivering $49 million and Xiidra contributing $92 million [25][26] Market Data and Key Metrics Changes - Contact lens revenue growth was 12%, with the U.S. up 13% and international markets up 11%, particularly strong growth in China at 16% [21][22] - The broader consumer market in the U.S. experienced disruptions, impacting the eye vitamins franchise, which was down 9% in Q3 [20] Company Strategy and Development Direction - The company is focused on a relentless execution strategy, emphasizing sales excellence, operational excellence, and innovation [7][55] - There is a strategic shift towards a higher-margin product portfolio, with ongoing investments in R&D and digital capabilities [9][29] - The company is committed to a full separation from Bausch Health, exploring multiple paths to achieve this [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum and strong performance, expecting continued revenue growth and future margin expansion [36] - The company is closely monitoring the impact of the Inflation Reduction Act and balancing TRx growth with access to coverage for patients [33][60] Other Important Information - The company raised its full-year revenue guidance to a range of $4.725 billion to $4.825 billion, reflecting strong performance from Miebo and lower expected currency headwinds [32] - The launch of Opal, a digital e-commerce marketplace, aims to streamline ordering processes for contact lenses, enhancing customer experience [45][46] Q&A Session Summary Question: What has been the biggest factor in the company's current success? - Management highlighted a clear strategy focused on sales excellence, operational excellence, and innovation, with a relentless focus on execution leading to broad-based performance [53][55] Question: How sustainable is the growth in the dry eye portfolio? - Management noted strong performance in the dry eye portfolio, with Miebo and Xiidra driving growth, and emphasized the importance of a holistic approach to treating dry eye disease [59][60] Question: What are the expectations for Xiidra sales in 2025? - Management indicated that while there are headwinds expected from the Inflation Reduction Act, they anticipate continued volume growth for Xiidra [69] Question: What is the expected impact of direct-to-consumer campaigns for Xiidra and Miebo? - Management expressed optimism about the early results of the campaigns, noting that they will continue to invest based on ROI analysis [72][73]

For the quarter ended September 2024, Bausch + Lomb (BLCO) reported revenue of $1.2 billion, up 18.8% over the same period last year. EPS came in at $0.17, compared to $0.22 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.17 billion, representing a surprise of +2.54%. The company delivered an EPS surprise of +6.25%, with the consensus EPS estimate being $0.16. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Bausch + Lomb (BLCO) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.13, delivering no surprise. Over the last four quarters, the company has surpas ...

Exhibit 99.1 Bausch + Lomb Announces Third-Quarter 2024 Results • Revenue of $1.196 Billion • GAAP Net Income Attributable to Bausch + Lomb Corporation of $4 Million • Adjusted EBITDA (non-GAAP) of $212 Million; Adjusted EBITDA excluding Acquired IPR&D (nonGAAP) of $227 Million • Revenue Grew 19% as Reported and 19% on a Constant Currency Basis Compared to the Third Quarter of 2023, Driven by Solid Execution and Growth Across All Segments • Raising Full-Year 2024 Revenue Guidance 1 1 1 VAUGHAN, Ontario, Oct ...

It was quite a busy and eventful day for the company. Monday was an eventful day for Bausch + Lomb (BLCO 7.19%). The eye care specialist's major piece of internal news was that it earned its latest Food and Drug Administration (FDA) approval. As if that weren't enough, media reports claimed that the company has put itself up for sale. Buffeted by these strong winds, Bausch + Lomb's stock price rose over 7% in the day's trading session. Eyes on the prize Of the two news items, the buyout one had the bigger i ...