Staar Surgical (Nasdaq:STAA) shares took a hit after hours on third-quarter results that came in ahead of the consensus forecast.
Shares of STAA dipped 4.4% at $67.50 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day down 0.3%.
The Lake Forest, California-based ocular implant company posted profits of $10.3 million for the quarter. That amounts to 21¢ per share on sales of $76 million for the three months ended Sept. 30, 2022.
Staar Surgical reported a 70.5% bottom-line gain on sales growth of 30.3%. Increased costs associated with manufacturing projects offset strong profits for Staar. Meanwhile, changes in currency, primarily in the Japanese Yen as well as the Euro, negatively impacted sales.
EVO ICL sales growth bolstered the company’s performance despite macroeconomic headwinds.
Adjusted to exclude one-time items, earnings per share totaled 38¢. That comes in 25¢ ahead of Wall Street. Sales topped expectations as well as analysts projected revenues of $74.95 million.
Staar CEO: Focus on growth opportunities is “vital”
“Today it is vital that Staar focus on the significant growth opportunities we have with our premium EVO products,” said Caren Mason, Staar Surgical president and CEO. “At the same time, our low-margin other products business, which represents approximately 5% of sales and consists of cataract IOLs, IOL injectors and injector parts, has faced increasing supply chain challenges. As a result of third-party materials and supply chain challenges that only affect our Other Products business, we will no longer be able to support other products as we have historically. We will continue to support customers of other products through the end of 2023.”
Mason added that, despite the challenges Staar faces, it expects 30% ICL sales growth year-over-year. The company projects approximately $355 million in total sales for 2023. It expects to finish this year with revenues of $285 million. That represents a $10 million decrease from the previous guidance of $295 million.