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Alcon (ALC) Surgical Arm Expands, International Growth Slows
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Alcon Inc (ALC - Free Report) is witnessing a recovery in the Surgical and Vision Care businesses. The company’s focus on research and innovation is also encouraging. However, the contact lens market has been growing slowly internationally. The stock currently carries a Zacks Rank #3 (Hold).
Alcon has outperformed the industry over the past year. The stock has rallied 10.8% against the industry’s 9.8% decline.
The company reported better-than-expected results for fourth-quarter 2021. Year-over-year growth across all sales categories in Surgical and Vision Care was driven primarily by growing demand for new products, solid commercial execution and strong market recovery in the United States.
In Surgical, the company remains the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. In the fourth quarter, Total Surgical (consisting of Implantables, Consumables and Equipment/other) reported sales growth of 14% at CER. According to the company, it remained the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. Penetration of advanced technology lenses continues to increase. The global cataract surgery market was relatively consistent with the sequentially-last quarter. In the fourth quarter, Alcon added Hydrus Microstent to its portfolio of implantable devices.
In Vision Care, Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market. In terms of end market, within Surgical, barring India, which has been slower to recover from the pandemic, global procedures in the fourth quarter were up low to mid-single digits compared with 2019. Within the Vision Care end market, the contact lens market in the fourth quarter broadly returned to the 2019 levels and grew in high single digits, led by the United States.
On the flip side, in the fourth quarter of 2021, in terms of end market, within Surgical, global cataract procedures were down in low single digits from 2019. Growth in international markets was still slower to recover. Within Vision Care, the contact lens market growth rates in international markets are still trailing behind the United States due to the varied pace of market recovery.
Challenging international markets with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Key Picks
Some better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #1.
Henry Schein has gained 6.1% compared with the industry’s 1.7% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.
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Alcon (ALC) Surgical Arm Expands, International Growth Slows
Alcon Inc (ALC - Free Report) is witnessing a recovery in the Surgical and Vision Care businesses. The company’s focus on research and innovation is also encouraging. However, the contact lens market has been growing slowly internationally. The stock currently carries a Zacks Rank #3 (Hold).
Alcon has outperformed the industry over the past year. The stock has rallied 10.8% against the industry’s 9.8% decline.
The company reported better-than-expected results for fourth-quarter 2021. Year-over-year growth across all sales categories in Surgical and Vision Care was driven primarily by growing demand for new products, solid commercial execution and strong market recovery in the United States.
In Surgical, the company remains the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. In the fourth quarter, Total Surgical (consisting of Implantables, Consumables and Equipment/other) reported sales growth of 14% at CER. According to the company, it remained the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. Penetration of advanced technology lenses continues to increase. The global cataract surgery market was relatively consistent with the sequentially-last quarter. In the fourth quarter, Alcon added Hydrus Microstent to its portfolio of implantable devices.
In Vision Care, Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market. In terms of end market, within Surgical, barring India, which has been slower to recover from the pandemic, global procedures in the fourth quarter were up low to mid-single digits compared with 2019. Within the Vision Care end market, the contact lens market in the fourth quarter broadly returned to the 2019 levels and grew in high single digits, led by the United States.
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On the flip side, in the fourth quarter of 2021, in terms of end market, within Surgical, global cataract procedures were down in low single digits from 2019. Growth in international markets was still slower to recover. Within Vision Care, the contact lens market growth rates in international markets are still trailing behind the United States due to the varied pace of market recovery.
Challenging international markets with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Key Picks
Some better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #1.
Henry Schein has gained 6.1% compared with the industry’s 1.7% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.