Alcon Earnings: Ends the Year With Solid Results and Prepares for Innovation-Filled 2025

Narrow-moat Alcon reported solid fourth-quarter earnings and ended 2024 on strong footing. Total sales of $2.5 billion were up 7.1% year over year thanks to broad-based growth across the portfolio. Surgical was up 5.3%, mainly driven by healthy numbers from consumables, and vision care was up 7.6% thanks to contact lens delivering double-digit growth. Below the line also looked solid as efficient operating expense management led to profit expansion—core EBIT margin improved 120 basis points—and mid-single-digit EPS growth. After rolling our model and baking in updated exchange rates, we raise our fair value estimate to $80 (CHF 71) per share from $75 (CHF 66).