Alcon (NYSE:ALC) shares ticked up this morning on third-quarter results that came in ahead of the consensus earnings forecast.
Shares of ALC rose 8% at $68.46 apiece as the market opened today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 6.9%.
The Geneva, Switzerland-based company posted profits of $116 million for the quarter. That amounts to 23¢ per share on sales of $2.124 billion for the three months ended Sept. 30, 2022.
Alcon recorded a massive bottom-line gain from profits of just $2 million this time last year. It posted sales growth of 1.9%.
Adjusted to exclude one-time items, earnings per share came in at 50¢. That just beat out expectations of 48¢ on Wall Street. Sales just missed as analysts projected revenues of $2.13 billion.
The company’s surgical business sales grew by 5% year-over-year. Alcon attributed this to improvements in international markets. Vision care grew by 2%, thanks to sales for its silicone hydrogel contact lenses and Systane artificial tears. However, supply chain challenges offset that strong performance slightly, according to a news release.
Alcon records “strong operational performance”
“Our third quarter results reflect the continued strong operational performance of the business in an extremely challenging macroeconomic environment,” said David J. Endicott, Alcon CEO. “Demand for our products was robust, and we saw particularly strong growth in our international markets. We have built a solid foundation and our business fundamentals are strong.
“We are pleased with our margin expansion and operating leverage, despite the headwinds of a strong US dollar. Looking forward, we will continue to focus on advancing our innovation engine, driving commercial execution and creating long-term shareholder value.”
Alcon reduced the high end of its adjusted EPS guidance for the full year. It now expects between $2.20 and $2.25, having previously projected $2.20 to $2.30. It slightly cut both ends of its sales guidance, with eyes on revenues between $8.5 billion and $8.7 billion. Alcon set its previous guidance between $8.6 billion and $8.8 billion.
BTIG analyst Ryan Zimmerman wrote that the initial take on Alcon’s performance is positive. He said the business demonstrates solidity on an underlying basis. Zimmerman and BTIG retain a “Buy” rating for Alcon.