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Alcon (ALC) to Report Q2 Earnings: What's in the Cards?
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Alcon Inc (ALC - Free Report) is set to report second-quarter 2021 results on Aug 18, before market open.
In the last reported quarter, the company’s earnings of 49 cents beat the Zacks Consensus Estimate by 11.36%. Earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 25.53%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Since the beginning of 2021, Alcon has been witnessing healthy sales and a return to 2019 (the pre pandemic) core margin levels despite continued pandemic-led disruption. Strong commercial execution of new product launches has continued to drive market share gains for the company, which is expected to reflect in Alcon’s second-quarter results.
The Surgical segment, comprising implantables, consumables and equipment/other, is expected to have put up a sequentially better performance in the second quarter. We expect this arm to deliver better results in the to-be-reported quarter on the back of solid growth in Alcon’s latest advanced technology IOLs and strong demand for equipment. Continued strength in PanOptix is likely to have driven implantable sales in the second quarter. Alcon is anticipated to have gained from the increasing market penetration of Vivity, which is available in the United States, Europe and key markets of the Asia Pacific. Despite the slowdown in cataract procedures over the past few quarters, procedures volumes are likely to have steadily climbed in the second quarter on the availability of vaccines worldwide.
Within the Vision Care business, comprising contact lenses and ocular health, Alcon witnessed growth deceleration in the last-reported quarter on unfavorable year-over-year comparison. This was mainly due to COVID-related forward purchasing in the first few months of 2020. As the preemptive stocking of over-the-counter (OTC) products at the onset of the COVID-19 pandemic continued even in the second quarter of 2020, a similar scenario is expected to get reflected in the second-quarter 2021 results.
However, Alcon is consistently gaining share in the daily SiHy lens category since the launch of Precision1. The company is likely have continued to gain shares across the U.S. and international markets as the rollout of both Precision1 sphere and Precision1 for Astigmatism gained momentum in the second quarter. In Ocular health, continued strength in Pataday backed by the latest U.S. launch of Pataday Extra Strength allergy eye drop is likely to have contributed to growth in the second quarter. Further, strength in the dry eye products portfolio with the addition of Systane Hydration Multi-Dose Preservative-Free Lubricant Eye Drops and added strength in ophthalmic eye drop portfolio with the recent acquisition of Simbrinza are likely to have contributed to growth.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2021 revenues is pegged at $1.96 billion, suggesting a 63.83% surge over the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2021 earnings per share of 43 cents indicates an improvement from the year-ago adjusted loss of 21 cents a share.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Alcon has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present. The company is slated to release third-quarter fiscal 2021 results on Aug 17.
Kinnate Biopharma Inc. has an Earnings ESP of +1.15% and a Zacks Rank of 3, at present. The company is slated to release second-quarter 2021 results on Aug 16.
Electromed, Inc. (ELMD - Free Report) has an Earnings ESP of +71.43% and a Zacks Rank of 3, at present. The company is slated to release fourth-quarter fiscal 2021 results on Aug 24.
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Alcon (ALC) to Report Q2 Earnings: What's in the Cards?
Alcon Inc (ALC - Free Report) is set to report second-quarter 2021 results on Aug 18, before market open.
In the last reported quarter, the company’s earnings of 49 cents beat the Zacks Consensus Estimate by 11.36%. Earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 25.53%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Since the beginning of 2021, Alcon has been witnessing healthy sales and a return to 2019 (the pre pandemic) core margin levels despite continued pandemic-led disruption. Strong commercial execution of new product launches has continued to drive market share gains for the company, which is expected to reflect in Alcon’s second-quarter results.
The Surgical segment, comprising implantables, consumables and equipment/other, is expected to have put up a sequentially better performance in the second quarter. We expect this arm to deliver better results in the to-be-reported quarter on the back of solid growth in Alcon’s latest advanced technology IOLs and strong demand for equipment. Continued strength in PanOptix is likely to have driven implantable sales in the second quarter. Alcon is anticipated to have gained from the increasing market penetration of Vivity, which is available in the United States, Europe and key markets of the Asia Pacific. Despite the slowdown in cataract procedures over the past few quarters, procedures volumes are likely to have steadily climbed in the second quarter on the availability of vaccines worldwide.
ALCON INC Price and EPS Surprise
ALCON INC price-eps-surprise | ALCON INC Quote
Within the Vision Care business, comprising contact lenses and ocular health, Alcon witnessed growth deceleration in the last-reported quarter on unfavorable year-over-year comparison. This was mainly due to COVID-related forward purchasing in the first few months of 2020. As the preemptive stocking of over-the-counter (OTC) products at the onset of the COVID-19 pandemic continued even in the second quarter of 2020, a similar scenario is expected to get reflected in the second-quarter 2021 results.
However, Alcon is consistently gaining share in the daily SiHy lens category since the launch of Precision1. The company is likely have continued to gain shares across the U.S. and international markets as the rollout of both Precision1 sphere and Precision1 for Astigmatism gained momentum in the second quarter. In Ocular health, continued strength in Pataday backed by the latest U.S. launch of Pataday Extra Strength allergy eye drop is likely to have contributed to growth in the second quarter. Further, strength in the dry eye products portfolio with the addition of Systane Hydration Multi-Dose Preservative-Free Lubricant Eye Drops and added strength in ophthalmic eye drop portfolio with the recent acquisition of Simbrinza are likely to have contributed to growth.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter 2021 revenues is pegged at $1.96 billion, suggesting a 63.83% surge over the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2021 earnings per share of 43 cents indicates an improvement from the year-ago adjusted loss of 21 cents a share.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Alcon has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present. The company is slated to release third-quarter fiscal 2021 results on Aug 17.
Kinnate Biopharma Inc. has an Earnings ESP of +1.15% and a Zacks Rank of 3, at present. The company is slated to release second-quarter 2021 results on Aug 16.
Electromed, Inc. (ELMD - Free Report) has an Earnings ESP of +71.43% and a Zacks Rank of 3, at present. The company is slated to release fourth-quarter fiscal 2021 results on Aug 24.