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 ...

Financial Performance - Total revenue for Q3 2024 was $1.196 billion, a 19% increase from $1.007 billion in Q3 2023[4] - GAAP net income attributable to Bausch + Lomb was $4 million, compared to a net loss of $84 million in Q3 2023, representing a favorable change of $88 million[10] - Adjusted EBITDA (non-GAAP) for Q3 2024 was $212 million, up from $187 million in Q3 2023, an increase of $25 million[12] - Product sales for Q3 2024 reached $1,192 million, a 19% increase from $1,004 million in Q3 2023[33] - The adjusted EBITDA for the three months ended September 30, 2024, was $212 million, up from $187 million in the same period of 2023, reflecting a growth of 13%[37] - The adjusted net income for the three months ended September 30, 2024, was $144 million, compared to a loss of $84 million in the same period of 2023[37] - The company reported a net income of $4 million in Q3 2024, a significant improvement from a net loss of $84 million in Q3 2023[33] Segment Performance - Pharmaceuticals segment revenue surged 76% to $306 million in Q3 2024, driven by the acquisition of XIIDRA and the launch of MIEBO[8] - Surgical segment revenue increased by 11% to $206 million, primarily due to demand for premium IOL products[7] - Vision Care segment revenue grew 6% to $684 million, supported by sales from the dry eye portfolio and SiHy Daily lenses[6] - The Vision Care segment reported revenue of $684 million for the three months ended September 30, 2024, a 6% increase from $648 million in the same period of 2023[38] - The Pharmaceuticals segment experienced significant growth, with revenue increasing by 76% to $306 million for the three months ended September 30, 2024, compared to $174 million in 2023[38] Cash Flow and Guidance - Cash flow from operations for Q3 2024 was $154 million, significantly up from $48 million in Q3 2023, an increase of $106 million[11] - Full-year 2024 revenue guidance raised to $4.725 - $4.825 billion, reflecting strong performance and reduced currency headwinds[13] - Bausch + Lomb's cash, cash equivalents, and restricted cash totaled $350 million as of September 30, 2024[14] - Bausch + Lomb's 2024 full-year guidance is based on current management expectations and includes anticipated growth in key products like XIIDRA® and MIEBO®[17] Costs and Expenses - Research and development expenses for Q3 2024 were $84 million, slightly up from $82 million in Q3 2023[33] - The adjusted selling, general, and administrative expenses for the three months ended September 30, 2024, were $495 million, compared to $396 million in the same period of 2023[36] - The cost of goods sold for Q3 2024 was $464 million, an increase of 18.7% from $391 million in Q3 2023[33] Non-GAAP Measures - Adjusted EPS (non-GAAP) for Q3 2024 was $0.13, down from $0.22 in Q3 2023[12] - Adjusted net income (non-GAAP) for Q3 2024 was $46 million, compared to $76 million in Q3 2023, reflecting a decrease of 39%[34] - Non-GAAP financial measures are utilized to supplement GAAP measures, aiding investors in assessing the company's performance[20] - The company emphasizes that certain costs related to acquisitions and separations are excluded from non-GAAP measures to provide a clearer financial picture[26] Risks and Challenges - Risks associated with the proposed separation from Bausch Health Companies Inc. include potential delays and the need for various regulatory approvals[16] - Economic factors such as inflation and interest rates are anticipated to adversely impact revenue, expenses, and margins[17] - The company has incurred restructuring and transformation costs related to operational improvements and the separation process, which are expected to fluctuate significantly[25] - The company is pursuing acquisitions, including XIIDRA® and other ophthalmology assets, with associated risks of not realizing expected benefits in a timely manner[16] Foreign Exchange and Adjustments - The company experienced a foreign exchange loss of $5 million in Q3 2024, compared to a loss of $3 million in Q3 2023[33] - Total non-GAAP adjustments for Q3 2024 amounted to $42 million, compared to $160 million in Q3 2023[34] - The company utilized Constant Currency revenue growth to assess performance, indicating that foreign currency fluctuations can obscure underlying business trends[31]

Core Insights - Bausch + Lomb experienced a significant day with FDA approval and reports of a potential sale, leading to a stock price increase of over 7% [1] Group 1: FDA Approval - The FDA granted approval for Bausch + Lomb's full range of enVista Envy vision intraocular lenses (IOLs), which are used to treat cataracts and other vision disorders [4] Group 2: Potential Sale - Reports indicate that Bausch + Lomb is exploring a sale, with large U.S. investment firms Blackstone and TPG potentially collaborating on a buyout bid [2] - Bids for Bausch + Lomb are expected to range from $13 billion to $14 billion in enterprise value [3] - The management is working with advisor Goldman Sachs to gauge interest from potential buyers [2]

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Group 1 - Bausch + Lomb (BLCO) shares increased by 14.5% to $17.80, with a higher-than-average trading volume, contrasting with a 2.8% loss over the past four weeks [1][2] - The price surge is attributed to investor optimism following a Financial Times report indicating that Bausch + Lomb is considering a sale to address challenges from its spin-off from Bausch Health, with private equity firms likely interested [2][3] - The company is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year decline of 27.3%, while revenues are projected to be $1.17 billion, an increase of 15.8% from the previous year [3][4] Group 2 - The consensus EPS estimate for Bausch + Lomb has remained unchanged over the last 30 days, suggesting that the stock's price increase may not be sustainable without earnings estimate revisions [4] - Bausch + Lomb holds a Zacks Rank of 3 (Hold), indicating a neutral outlook, while another company in the same industry, Alignment Healthcare (ALHC), experienced a 3.2% decline in its last trading session [4][5] - Alignment Healthcare's consensus EPS estimate has decreased by 7.8% over the past month to -$0.14, representing a year-over-year change of 26.3% [5]

The highly indebted healthcare stock rose on rumors it may be selling itself. Shares of Bausch + Lomb (BLCO 15.63%) rallied 15.7% as of 3:07 p.m. ET today. The stock is surging today on news the company is considering selling itself. Of note, Bausch + Lomb is the eye-care subsidiary of Bausch Health Companies, which was formerly known as Valeant Pharmaceuticals. Bausch Health prefers cash, not shares Valeant got into trouble nearly a decade ago after using debt to buy up several pharmaceutical companies, th ...