Alcon Inc. shares (ALC, +4.04%) saw a decline of over 4% in premarket trading on Wednesday following the company’s report of third-quarter revenues that fell short of analysts’ expectations.
In the third quarter, Alcon reported a net income of $204 million, or 41 cents per share, compared to $116 million, or 23 cents per share, in the same period last year. Adjusted earnings per share came in at 66 cents, up from 50 cents in the previous year, which aligned with the FactSet consensus. However, revenues amounted to $2.303 billion, slightly lower than the FactSet consensus of $2.353 billion but an increase from $2.124 billion in the prior year.
Alcon adjusted its full-year outlook for sales and adjusted earnings per share. The company now expects sales to range from $9.3 billion to $9.4 billion, compared to the previous guidance of $9.3 billion to $9.5 billion. Adjusted earnings per share are forecasted to be between $2.70 and $2.75, as opposed to the earlier forecast of $2.70 to $2.80.
While Alcon’s ocular-health segment experienced a 19% growth in revenues, reaching $415 million, driven primarily by eye-drop sales and price increases, the surgical segment performed below expectations. The total sales for the surgical segment amounted to $1.276 billion, falling short of the FactSet consensus of $1.307 billion. Contact-lens sales, on the other hand, grew by 10% from the previous year to $612 million. Analysts from Needham noted that Alcon has gained market share in the contact-lens industry within the past year, based on the results of Alcon and its competitors Bausch + Lomb Corp. (BLCO, +2.71%) and Johnson & Johnson (JNJ, +0.02%).
Alcon shares have seen an increase of 9.4% year-to-date, while the S&P 500 (SPX) has shown a rise of 17%.