Alcon Q1 Earnings Miss Estimates, Stock Down, 2025 EPS View Lowered

Alcon, Inc. ALC delivered first-quarter 2025 core earnings per share (EPS) of 73 cents, down 6.4% from the year-ago quarter’s figure. At the constant exchange rate or CER, the figure was in line year over year. However, the metric missed the Zacks Consensus Estimate by 3.9%.Alcon reports “core” results based on non-IFRS (International Financial Reporting Standards) measures. In the first quarter, the company’s EPS was 70 cents, up 40% (50% at CER) year over year.ALC’s Q1 Revenues in DetailNet sales to third parties in the quarter under review were $2.45 billion, which missed the Zacks Consensus Estimate by 2.3%. The top line  increased 0.3% from the year-ago quarter’s level (up 3% at CER).Following the earnings release yesterday, ALC's stock price fell 2.4% in after-hours trading.Segmental Breakup of ALC’s Q1 RevenuesAlcon reports operations through two segments — Surgical (comprising Implantables, Consumables and Equipment/Other) and Vision Care (comprising Contact Lenses and Ocular Health).SurgicalSurgical sales amounted to $1.33 billion, down 1% year over year on a reported basis (up 2% at CER). Our model projected the segment’s growth to be 5.5% at CER versus the prior year.Within this, net sales in Implantables were consistent with the first-quarter 2024 figure at CER, led by strong sales of advanced technology intraocular lenses in international markets. This was partially offset by slower market conditions and competitive pressures in the United States. Our model projected 3.1% year-over-year growth at CER.Alcon Price, Consensus and EPS Surprise Alcon price-consensus-eps-surprise-chart | Alcon QuoteConsumables net sales increased 6% at CER, driven by vitreoretinal and cataract consumables, particularly in international markets, and price increases. Our model projected growth rate of 7.3% at CER.Equipment/Other net sales were down 6% at CER from the prior-year quarter’s level. Our model forecasted 6% growth at CER.Vision CareThe segment reported total sales of $1.10 billion, up 1% year over year on a reported basis and 3% at CER. Our model projected 7.5% growth at CER.Net sales of Contact Lenses increased 4% year over year at CER, driven by product innovation, including the toric and multifocal modalities, and price increases. Our model’s projection was 4.4% growth at CER.Ocular Health sales increased 2% year over year at CER, primarily driven by the portfolio of eye drops, including continued strength from the Systane family of artificial tears as well as price increases. Our model forecasted 2.9% growth at CER.ALC’s Q1 Margin PerformanceThe cost of net sales in the first quarter was $1.07 billion, up 0.8% year over year. The gross profit fell 0.1% to $1.38 billion. Meanwhile, the core gross margin contracted 20 basis points (bps) to 56.3%.SG&A expenses increased 1.4% year over year, while R&D expenses rose 11.6%. The operating margin contracted 147 bps in the first quarter to 14.1%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) ALC’s Financial PositionAlcon exited the first quarter of 2025 with cash and cash equivalents of $1.41 billion compared with $1.68 billion at the end of fourth-quarter 2024.The cumulative net cash flow from operating activities at the end of the first quarter was $384 million compared with $341 million in the year-ago period. Free cash flow totaled $278 million compared with $229 million in the comparable period of 2024.ALC’s 2025 OutlookThe company now anticipates 2025 net sales to be in the range of $10.4-$10.5 billion (earlier $10.2-$10.5 billion), indicating year-over-year growth of 6-7% (previously 6%-8%) at CER. The Zacks Consensus Estimate for ALC’s revenues is pegged at $10.29 billion.Core EPS for the full year is expected to be in the range of $3.05-$3.15 (earlier $3.15 to $3.25). This suggests growth of 2%-5% (earlier 8-11% at CER) from the 2024 levels. The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.21 per share.Our Take on ALC’s Q1 ResultsAlcon ended the first quarter of 2025 with both earnings and revenues missing estimates. The bottom line also fell on a year-over-year basis. Both margins decreased in the quarter, which is discouraging. The dismal EPS guidance for the year also does not bode well.On a positive note, both Surgical and Vision Care sales increased at CER. Despite a soft U.S. market, initial customer reception for the recent product launches, including Unity VCS, PanOptix Pro, Voyager, Precision7 and Systane Pro PF, has been favorable. These innovations are expected to accelerate Alcon's growth in the second half of 2025.ALC’s Zacks Rank & Key PicksAlcon currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation (ITGR) and Boston Scientific (BSX).AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Alcon (ALC): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks