Alcon reports strong Q1 earnings, beats consensus estimates
Swiss-based eye care company Alcon reported strong Q1 earnings that beat consensus estimates, leading to a surge in its stock price. Investment firm Baird upgraded its rating on the company’s stock from Neutral to Outperform and raised its price target from $75 to $90.
The company reported earnings per share (EPS) of $0.70 and revenue of $2.3 billion, both beating analysts’ estimates. Alcon’s stock jumped over 7% in pre-market trading after the news was announced.
Alcon’s Q1 earnings report showed a 4% increase in net sales compared to the same period last year. The company’s surgical division, which provides ophthalmic equipment and surgical products, saw a 9% increase in sales, while its vision care division, which provides contact lenses and lens care products, saw a 2% increase.
The company’s gross margin increased by 0.7 percentage points to 63.2%, driven by higher sales and improved product mix. Alcon also announced that it had completed the acquisition of PowerVision, a privately-held medical device company that develops and markets intraocular lenses.
Baird’s rating upgrade
Baird’s upgrade of Alcon’s stock rating from Neutral to Outperform reflects the investment firm’s positive outlook for the company’s financial performance going forward. Baird cited Alcon’s “solid growth” and “attractive valuation” as reasons for the rating upgrade.
In addition to upgrading Alcon’s rating, Baird raised the price target for the company’s stock from $75 to $90. This represents a potential upside of approximately 16% from the stock’s current trading price.
Alcon’s Q1 earnings report and Baird’s rating upgrade come at a time when the broader market is experiencing volatility due to the COVID-19 pandemic. However, the eye care industry has remained relatively stable during the pandemic, as people continue to require medical care for their eyesight.
According to a report by Grand View Research, the global eye care market is expected to reach $192.85 billion by 2028, driven by factors such as an aging population and an increase in eye disorders.
Alcon’s strong Q1 earnings report and Baird’s rating upgrade have given investors reason to be optimistic about the company’s future prospects. The eye care industry is expected to continue growing in the coming years, which bodes well for Alcon’s financial performance.
Investors should keep an eye on Alcon’s upcoming earnings reports and any updates on the company’s acquisition of PowerVision, as these factors could impact the stock’s performance in the near term. Overall, Alcon’s strong Q1 performance and positive market outlook make it a stock to watch in the eye care industry.