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Alcon (ALC) Gains From Robust Contact Lense Sales, Launches
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Alcon (ALC - Free Report) has been benefiting from a strong market rebound. The company’s focus on research and innovation is also encouraging. The stock carries a Zacks Rank #2 (Buy).
Alcon has outperformed the industry over the past year. The stock has gained 21.1% compared with the industry’s 18.3% rise.
Alcon’s first-quarter 2023 earnings and revenues beat the Zacks Consensus Estimate. Within the Surgical segment, growth was driven by strong consumables and equipment sales. The company had another strong quarter despite challenging comparisons in South Korea. Excluding the impact from Korea, sales were up roughly 5% on a reported basis and approximately 9% on a constant currency basis.
The company continued with its ATIOL market leadership for another quarter with approximately half of the global market and two-thirds of the U.S. market despite increasing competitive activity. In Equipment, Alcon continued to upgrade and expand its installed base with the CENTURION and LEGION devices.
Within Vision Care, the upside was driven by continued growth in silicone hydrogel contact lenses, including the Precision1 and Total product families, and price increases.
In terms of innovation, the company currently sees meaningful share gains, driven by its new toric product launches, including Precision1, Total30 and Dailies Total1. It introduced Total30 for astigmatism in the first quarter. This is the first reusable lense water gradient technology created specifically for astigmatic wearers. The initial customer response has been exceptional. Total 30 toric lense is currently available in the United States and parts of Europe. Alcon targets expanding availability to additional markets throughout 2023.
In ocular health, the company continues to integrate Aerie (acquired in Nov 2022) into the Alcon family. Its U.S. eye drop sales force has already added Rocklatan and Rhopressa to its promotional program, which contributed well to its Vision Care growth in the first quarter. In addition, the company is witnessing growth in the over-the-counter portfolio, mainly driven by favorable pricing and a sustained family of products.
On the flip side, during the first quarter, Alcon’s growth in net sales across all segments was marred by unfavorable currency impacts. Further, the company’s operating margin in the quarter was impacted by legal settlement costs, rising inflationary costs, acquisition and integration-related expenses and increased R&D investments, post the acquisition of Aerie Pharmaceuticals, Inc.
We note that the ophthalmology industry is highly competitive and, in both surgical and vision care businesses, Alcon faces intense competition. In the surgical business, Alcon faces a mixture of competitors, ranging from large manufacturers with multiple business lines to small manufacturers that offer a limited selection of specialized products. The company also faces competition from providers of alternative medical therapies such as pharmaceutical companies that have the potential to disrupt core elements of its business.
Haemonetics’ stock has risen 32.2% in the past year. The Zacks Consensus Estimate for Haemonetics’ earnings per share (EPS) has increased from $3.55 to $3.56 for fiscal 2024 and remained constant at $3.96 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in all the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, the company registered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for Zimmer Biomet’s 2023 EPS has remained constant at $7.45 in the past 30 days. Shares of the company have gained 37.6% in the past year against the industry’s 19.9% decline.
ZBH’s earnings beat estimates in all the trailing four quarters, the average surprise being 7.38%. In the last reported quarter, the company recorded an earnings surprise of 13.86%.
The Zacks Consensus Estimate for SiBone’s 2023 loss per share has narrowed from $1.44 to $1.42 in the past 30 days. SIBN shares have gained 92% in the past year compared with the industry’s 18.3% growth.
SiBone’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 11.11%. In the last reported quarter, the company recorded an earnings surprise of 21.95%.
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Alcon (ALC) Gains From Robust Contact Lense Sales, Launches
Alcon (ALC - Free Report) has been benefiting from a strong market rebound. The company’s focus on research and innovation is also encouraging. The stock carries a Zacks Rank #2 (Buy).
Alcon has outperformed the industry over the past year. The stock has gained 21.1% compared with the industry’s 18.3% rise.
Alcon’s first-quarter 2023 earnings and revenues beat the Zacks Consensus Estimate. Within the Surgical segment, growth was driven by strong consumables and equipment sales. The company had another strong quarter despite challenging comparisons in South Korea. Excluding the impact from Korea, sales were up roughly 5% on a reported basis and approximately 9% on a constant currency basis.
The company continued with its ATIOL market leadership for another quarter with approximately half of the global market and two-thirds of the U.S. market despite increasing competitive activity. In Equipment, Alcon continued to upgrade and expand its installed base with the CENTURION and LEGION devices.
Within Vision Care, the upside was driven by continued growth in silicone hydrogel contact lenses, including the Precision1 and Total product families, and price increases.
Alcon Price
Alcon price | Alcon Quote
In terms of innovation, the company currently sees meaningful share gains, driven by its new toric product launches, including Precision1, Total30 and Dailies Total1. It introduced Total30 for astigmatism in the first quarter. This is the first reusable lense water gradient technology created specifically for astigmatic wearers. The initial customer response has been exceptional. Total 30 toric lense is currently available in the United States and parts of Europe. Alcon targets expanding availability to additional markets throughout 2023.
In ocular health, the company continues to integrate Aerie (acquired in Nov 2022) into the Alcon family. Its U.S. eye drop sales force has already added Rocklatan and Rhopressa to its promotional program, which contributed well to its Vision Care growth in the first quarter. In addition, the company is witnessing growth in the over-the-counter portfolio, mainly driven by favorable pricing and a sustained family of products.
On the flip side, during the first quarter, Alcon’s growth in net sales across all segments was marred by unfavorable currency impacts. Further, the company’s operating margin in the quarter was impacted by legal settlement costs, rising inflationary costs, acquisition and integration-related expenses and increased R&D investments, post the acquisition of Aerie Pharmaceuticals, Inc.
We note that the ophthalmology industry is highly competitive and, in both surgical and vision care businesses, Alcon faces intense competition. In the surgical business, Alcon faces a mixture of competitors, ranging from large manufacturers with multiple business lines to small manufacturers that offer a limited selection of specialized products. The company also faces competition from providers of alternative medical therapies such as pharmaceutical companies that have the potential to disrupt core elements of its business.
Other Key Picks
Some other top-ranked stocks in the overall healthcare sector are Haemonetics (HAE - Free Report) , Zimmer Biomet (ZBH - Free Report) and SiBone (SIBN - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ stock has risen 32.2% in the past year. The Zacks Consensus Estimate for Haemonetics’ earnings per share (EPS) has increased from $3.55 to $3.56 for fiscal 2024 and remained constant at $3.96 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in all the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, the company registered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for Zimmer Biomet’s 2023 EPS has remained constant at $7.45 in the past 30 days. Shares of the company have gained 37.6% in the past year against the industry’s 19.9% decline.
ZBH’s earnings beat estimates in all the trailing four quarters, the average surprise being 7.38%. In the last reported quarter, the company recorded an earnings surprise of 13.86%.
The Zacks Consensus Estimate for SiBone’s 2023 loss per share has narrowed from $1.44 to $1.42 in the past 30 days. SIBN shares have gained 92% in the past year compared with the industry’s 18.3% growth.
SiBone’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 11.11%. In the last reported quarter, the company recorded an earnings surprise of 21.95%.