Alcon's stock falls as third-quarter sales miss estimates

By Eleanor Laise

Eye-care company reins in full-year sales and profit outlook

Alcon Inc. shares (ALC) dropped more than 4% premarket on Wednesday after the eye care company on Tuesday reported third-quarter revenues below analysts' expectations.

The company reported net income of $204 million, or 41 cents per share, compared with net income of $116 million, or 23 cents per share, in the year-earlier period. Adjusted earnings per share came to 66 cents, up from 50 cents a year earlier, and was in line with the FactSet consensus. Revenues totaled $2.303 billion, up from $2.124 billion a year earlier but missed the FactSet consensus of $2.353 billion.

Alcon reined in the upper end of its full-year outlook for sales and adjusted earnings per share. The company said it now expects sales of $9.3 billion to $9.4 billion, versus previous guidance of $9.3 billion to $9.5 billion, and adjusted earnings per share of $2.70 to $2.75, compared with an earlier forecast of $2.70 to $2.80.

Revenues in Alcon's ocular-health segment jumped 19% from a year earlier, to $415 million, driven mainly by eye-drop sales and price increases, the company said.

Contact-lens sales grew 10% from a year earlier, to $612 million. Based on results from Alcon as well as competitors Bausch + Lomb Corp. (BLCO) and Johnson & Johnson (JNJ), Needham analysts estimated in a report Monday that Alcon has gained contact-lens market share over the past year.

But performance in Alcon's surgical segment was weaker than expected, with total sales of $1.276 billion missing the FactSet consensus of $1.307 billion.

Alcon shares have gained 9.4% in the year to date, while the S&P 500 SPX is up 17%.

-Eleanor Laise

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11-15-23 0849ET

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