GENEVA - Alcon (NYSE:ALC) Inc., a global leader in eye care, has adjusted its full-year sales and earnings projections following a third-quarter revenue that did not meet analysts' expectations. The company reported on Tuesday that while its net income for the third quarter increased to $204 million, or 41 cents per share, up from $116 million, or 23 cents per share, the previous year, revenue fell short of forecasts. This discrepancy led to a 4% premarket drop in Alcon shares.
The company's adjusted earnings per share rose to 66 cents from last year's 50 cents, aligning with FactSet consensus estimates. However, third-quarter revenues reached $2.303 billion, which was below the anticipated $2.353 billion. In response to this shortfall, today Alcon revised its full-year sales outlook from the prior guidance of $9.3-$9.5 billion down to $9.3-$9.4 billion and narrowed its earnings per share forecast to $2.70-$2.75 from the previous range of $2.70-$2.80.
Despite the lower-than-expected overall revenue, certain segments within Alcon showed strong performance. Needham analysts highlighted that the ocular health segment experienced a significant 19% revenue increase, driven by robust eye-drop sales and price hikes. Additionally, contact-lens sales saw a healthy 10% growth to $612 million, surpassing competitors like Bausch + Lomb Corp. and Johnson & Johnson (NYSE:JNJ).
On the other hand, surgical segment sales were less encouraging at $1.276 billion, missing the FactSet consensus of $1.307 billion.
Year-to-date, Alcon shares have climbed 9.4%, which contrasts with the S&P 500 index's rise of 17%. This latest financial update provides investors with a clearer picture of Alcon's performance amid a competitive market landscape and sets adjusted expectations for the company's year-end financials.
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