On Thursday, H.C. Wainwright adjusted the stock price target for Bausch & Lomb Corp. (NYSE:BLCO) to $23.00, up from the previous target of $22.00, while maintaining a Buy rating on the stock. This change follows the company's release of its third-quarter financial results for 2024.
Bausch + Lomb reported a total revenue of $1,196 million for the third quarter, marking an impressive year-over-year growth of 19% and surpassing the projected revenue of $1,115 million. Despite a $5 million negative impact from foreign exchange, the revenue growth stood at 19% on a constant currency basis.
The company's net income for the quarter was $4 million, or $0.01 per share, which notably exceeded the estimated loss of $92 million. This profit was largely attributed to a favorable shift in income taxes and improved operating results. The adjusted net income reached $46 million, or $0.13 per share, aligning with the projection of $45 million.
In light of these results, Bausch + Lomb's management has revised its revenue guidance for the year 2024 upwards to a range of $4.725 billion to $4.825 billion, from the previous forecast of $4.700 billion to $4.800 billion.
This update suggests a constant currency growth of 16-18%. However, the adjusted EBITDA forecast remains unchanged at $850 million to $900 million. The anticipated foreign exchange revenue headwinds have been reduced to $75 million.
Following the analysis of the quarterly performance and the updated guidance, H.C. Wainwright has raised its 12-month price target for Bausch & Lomb to the new level of $23, reaffirming its confidence in the stock with a Buy rating.
In other recent news, Bausch & Lomb Corporation has been in the spotlight following their strong third quarter results for 2024. The company reported a significant revenue growth, with earnings of $1.196 billion, marking a 19% increase year-over-year. This improvement was largely attributed to the robust performance of products such as Miebo and Xiidra, and the contact lens segment, particularly SiHy Dailies, which saw a 79% year-over-year increase.
Further adding to these developments, Bausch & Lomb raised its full-year revenue guidance following the positive quarterly results. The company's strategic focus on high-margin products and operational efficiency, as well as the FDA approval of new products like the enVista Envy trifocal IOL, have contributed to this optimistic outlook.
However, despite these positive revenue trends, Stifel maintained a Hold rating on the company with a consistent price target of $19.00. The firm's stance reflects a wait-and-see approach, as they look for additional evidence that Bausch & Lomb can achieve sustainable growth above market averages and demonstrate financial leverage alongside it.
These recent developments underscore the dynamic nature of Bausch & Lomb's operations and its potential for future growth.
InvestingPro Insights
Building on Bausch & Lomb's (NYSE:BLCO) strong third-quarter performance and H.C. Wainwright's optimistic outlook, recent data from InvestingPro provides additional context for investors. The company's market capitalization stands at $7.2 billion, reflecting its significant presence in the eye health industry.
InvestingPro data shows that Bausch & Lomb's revenue growth remains robust, with an 18.01% increase over the last twelve months as of Q3 2024, aligning closely with the 19% year-over-year growth reported in the latest quarter. This sustained growth trajectory supports management's upward revision of revenue guidance for 2024.
Two key InvestingPro Tips are particularly relevant to the company's current position. First, analysts predict that Bausch & Lomb will be profitable this year, which aligns with the company's better-than-expected net income in Q3.
Second, the stock has shown a strong return over the last three months, with InvestingPro data indicating a 18.7% price total return over that period. This positive momentum may reflect investor confidence in the company's improving financial performance and growth prospects.
For investors seeking a deeper analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Bausch & Lomb's investment potential.
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