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EYE Stock Gains on Q2 Earnings and Revenue Beat, '25 View Up

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Key Takeaways

  • EYE's Q2 adjusted EPS of $0.18 beat estimates and rose from $0.15 a year ago.
  • EYE's net revenues grew 7.7% to $486.4M, fueled by higher comp store sales.
  • EYE's fiscal 2025 revenue view raised to $1.93-$1.97B; EPS now seen at $0.62-$0.70.

National Vision Holdings, Inc. (EYE - Free Report) delivered second-quarter 2025 adjusted earnings of 18 cents per share compared with 15 cents a year ago. The figure surpassed the Zacks Consensus Estimate by 38.5%.

The GAAP earnings from continuing operations were 11 cents per share compared to a loss per share of 1 cent in the prior-year quarter.

Following the earnings announcement, shares of EYE rose 1.2% last Thursday.

National Vision’s Revenues

In fiscal 2024, the company ceased its Walmart and AC Lens operations. Accordingly, the consolidated financial statements classify the results of the former Legacy segment and the substantial majority of AC Lens operations as discontinued operations for all periods presented. As of Dec. 28, 2024, National Vision operated under one reportable segment, Owned & Host.

Net revenues from continuing operations in the second quarter were $486.4 million, which surpassed the Zacks Consensus Estimate by 3.9%.

The top line rose 7.7% from the year-ago quarter’s number, driven by comparable store sales growth.

In the second quarter, comparable store sales grew 6.5% year over year. Adjusted comparable store sales growth was 5.9%. National Vision opened eight new America’s Best stores, and ended the quarter with 1240 stores. Overall, the store count rose 2% year over year.

National Vision’s Q2 Margin Performance

On a consolidated basis, the gross profit in the second quarter rose 10.8% from the prior-year quarter’s level to $286 million. The gross margin expanded 2166 basis points (bps) despite a 3.5% rise in the cost of revenues (comprising products, services and plans).

SG&A expenses increased 6.8% year over year to $247.2 million. The adjusted operating margin was 8%, which expanded 206 bps year over year.

EYE’s Financial Position

National Vision exited the second quarter of 2025 with cash and cash equivalents of $48.5 million compared with $80 million at the end of the first quarter.

The cumulative net cash flow from operating activities at the end of the quarter was $86.5 million compared with $75.4 million a year ago.

National Vision Holdings, Inc. Price, Consensus and EPS Surprise

National Vision’s 2025 View

National Vision raised its fiscal 2025 outlook for the 53 weeks ending Jan. 3, 2026. In addition, the company estimates that the 53rd week of fiscal 2025 will contribute approximately $35 million to net revenues and nearly $3 million to adjusted operating income.

Fiscal 2025 revenues are now expected to be in the range of $1.93-$1.97 billion (up from $1.92-$1.95 billion). The Zacks Consensus Estimate for the metric is currently pegged at $1.96 billion.

Adjusted EPS is now estimated to be in the band of 62-70 cents (up from 59-67 cents). The Zacks Consensus Estimate is currently pegged at 67 cents.

Our Take on National Vision

National Vision ended the second quarter of 2025 with better-than-expected results, wherein both earnings and revenues topped estimates. The company delivered the tenth consecutive quarter of positive comparable store sales growth, driven by higher average ticket and continued strength in the company’s managed care cohort. The expansion of both margins in the quarter is also highly encouraging.

EYE successfully executed the new transformation initiatives in the second quarter. Additionally, the cost reduction initiatives taken by the company helped boost its quarterly performance.

Meanwhile, the company’s raised fiscal 2025 outlook bodes well.

EYE’s Zacks Rank and Key Picks

National Vision currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Cardinal Health (CAH - Free Report) .

Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth.

GeneDx Holdings, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2025 adjusted EPS of 50 cents, which exceeded the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.

WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth.

Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%.

CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9%. 

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