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Alcon (ALC) Rides on Innovation, Balanced Segmental Sales
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Alcon (ALC - Free Report) has been gaining from a strong market rebound. The company’s pipeline strength and focus on research and innovation are also impressive. The stock carries a Zacks Rank #2 (Buy) currently.
Alcon leads the market in Presbyopia-correcting Intraocular Lens (PCIOLs), with over 60% of the global share and more than 80% share in the United States. In Surgical, the company has maintained a strong share in PCIOLs, solidifying its market-leading position driven by strong demand for products like PanOptix and Vivity despite new entrants. Vivity's non-diffractive properties, ease of use and consistency of surgical outcomes make it particularly appealing.
Within Surgical, Alcon commercially launched SMARTCataract in the United States. This is expected to broaden the scope of the company in the growing surgical ophthalmology space. The company currently sees meaningful share gains, driven by its new toric product launches, including Precision1, Total30 and Dailies Total1.
The company will offer a cataract-only system called UNITY CS, which will be available starting in 2026. Importantly, UNITY brings with it new and innovative consumables that drive incremental benefits for the surgeon. The launch of these instruments will help the company secure the next decade of the company’s consumables business, which is a large, recurring, and profitable revenue stream.
In ocular health, the company is also expanding business with the integration of Rocklatan and Rhopressa and concluded Phase 3 trials for AR-15512, the dry eye pharmaceutical candidate. In addition, the company is witnessing growth in its over-the-counter portfolio, mainly driven by favorable pricing and a sustained family of products. The company looks forward to the growing demand for its multi-dose preservative-free formulations, which are helping expand the U.S. preservative-free category.
Image Source: Zacks Investment Research
Alcon’s Surgical business continues to gain from the company’s diverse portfolio and incremental innovation. In terms of the latest developments within Implantables, Alcon’s technology continues to lead the market. Globally, one out of every three IOLs implanted is done with an Alcon lens. In premium lenses, the statistic is even more impressive, with one out of two ATIOLs being an Alcon product. The company’s flagship lenses, Vivity and PanOptix, continue to lead the category in the United States and around the world. Additionally, it continues to expand in areas where it has significant opportunities to grow share, such as China.
Within the surgical franchise, revenues were up 6% year over year in the first quarter, mainly driven by advanced technology intraocular lenses, including Vivity, PanOptix and mono-focal toric in international markets.
Within Vision Care, Alcon is registering solid growth, banking on strong sales of its contact lenses and ocular health products. In contact lenses, the company is successfully executing its strategy of investing in fast-growing market segments where it has significant share opportunities. As a result of this, Alcon is at present outpacing market growth in every category where it has launched new products.
In contact lenses, Alcon with its strategic investments, has secured its position as one of the fastest-growing companies. It is witnessing strong interest in its specialty lenses, including multifocal and toric.
On the flip side, Alcon is experiencing inflationary pressure in electronic components, freight, labor, resins and plastics, impacting the company’s margins. The company is also encountering supply chain challenges in certain components, including microchips, resins and plastics, metals and filters. The company expects the inflationary pressure and supply chain challenges to continue into 2024. The cost of net sales in the first quarter was up 2.9% year over year. Our model estimates a 5.4% increase in the metric for 2024.
Meanwhile, the ophthalmology industry is highly competitive, and in both surgical and vision care businesses, Alcon faces intense competition. In the surgical business, Alcon faces a mixture of competitors, ranging from large manufacturers with multiple business lines to small manufacturers that offer a limited selection of specialized products. The company also faces competition from alternative medical therapy providers, such as pharmaceutical companies, which have the potential to disrupt core elements of its business.
In the Vision Care business, Alcon operates within a highly competitive environment. In contact lenses, increased product entries from contact lens manufacturers in Asia are posing a massive threat. The market for contact lenses is intensely competitive. It is characterized by declining sales volumes for older and reusable product lines and growing demand for daily lenses and advanced materials lenses.
Hims & Hers Heath shares have surged 138.2% in the past year. Estimates for the company’s earnings have increased from 18 cents to 20 cents for 2024 and from 33 cents to 38 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it delivered an earnings surprise of a staggering 150%.
Estimates for DaVita’s 2024 earnings per share have remained constant at $9.62 in the past 30 days. Shares of the company have surged 35.4% in the past year compared with the industry’s 11.5% growth.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 29.4%. In the last reported quarter, it delivered an earnings surprise of 21.4%.
Estimates for Haemonetics’ fiscal 2025earnings per share have moved north by 0.4% to $4.57 in the past 30 days. Shares of the company have dipped 1.3% in the past year.
HAE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.2%. In the last reported quarter, it delivered an earnings surprise of 2.3%.
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Alcon (ALC) Rides on Innovation, Balanced Segmental Sales
Alcon (ALC - Free Report) has been gaining from a strong market rebound. The company’s pipeline strength and focus on research and innovation are also impressive. The stock carries a Zacks Rank #2 (Buy) currently.
Alcon leads the market in Presbyopia-correcting Intraocular Lens (PCIOLs), with over 60% of the global share and more than 80% share in the United States. In Surgical, the company has maintained a strong share in PCIOLs, solidifying its market-leading position driven by strong demand for products like PanOptix and Vivity despite new entrants. Vivity's non-diffractive properties, ease of use and consistency of surgical outcomes make it particularly appealing.
Within Surgical, Alcon commercially launched SMARTCataract in the United States. This is expected to broaden the scope of the company in the growing surgical ophthalmology space. The company currently sees meaningful share gains, driven by its new toric product launches, including Precision1, Total30 and Dailies Total1.
The company will offer a cataract-only system called UNITY CS, which will be available starting in 2026. Importantly, UNITY brings with it new and innovative consumables that drive incremental benefits for the surgeon. The launch of these instruments will help the company secure the next decade of the company’s consumables business, which is a large, recurring, and profitable revenue stream.
In ocular health, the company is also expanding business with the integration of Rocklatan and Rhopressa and concluded Phase 3 trials for AR-15512, the dry eye pharmaceutical candidate. In addition, the company is witnessing growth in its over-the-counter portfolio, mainly driven by favorable pricing and a sustained family of products. The company looks forward to the growing demand for its multi-dose preservative-free formulations, which are helping expand the U.S. preservative-free category.
Image Source: Zacks Investment Research
Alcon’s Surgical business continues to gain from the company’s diverse portfolio and incremental innovation. In terms of the latest developments within Implantables, Alcon’s technology continues to lead the market. Globally, one out of every three IOLs implanted is done with an Alcon lens. In premium lenses, the statistic is even more impressive, with one out of two ATIOLs being an Alcon product. The company’s flagship lenses, Vivity and PanOptix, continue to lead the category in the United States and around the world. Additionally, it continues to expand in areas where it has significant opportunities to grow share, such as China.
Within the surgical franchise, revenues were up 6% year over year in the first quarter, mainly driven by advanced technology intraocular lenses, including Vivity, PanOptix and mono-focal toric in international markets.
Within Vision Care, Alcon is registering solid growth, banking on strong sales of its contact lenses and ocular health products. In contact lenses, the company is successfully executing its strategy of investing in fast-growing market segments where it has significant share opportunities. As a result of this, Alcon is at present outpacing market growth in every category where it has launched new products.
In contact lenses, Alcon with its strategic investments, has secured its position as one of the fastest-growing companies. It is witnessing strong interest in its specialty lenses, including multifocal and toric.
On the flip side, Alcon is experiencing inflationary pressure in electronic components, freight, labor, resins and plastics, impacting the company’s margins. The company is also encountering supply chain challenges in certain components, including microchips, resins and plastics, metals and filters. The company expects the inflationary pressure and supply chain challenges to continue into 2024. The cost of net sales in the first quarter was up 2.9% year over year. Our model estimates a 5.4% increase in the metric for 2024.
Meanwhile, the ophthalmology industry is highly competitive, and in both surgical and vision care businesses, Alcon faces intense competition. In the surgical business, Alcon faces a mixture of competitors, ranging from large manufacturers with multiple business lines to small manufacturers that offer a limited selection of specialized products. The company also faces competition from alternative medical therapy providers, such as pharmaceutical companies, which have the potential to disrupt core elements of its business.
In the Vision Care business, Alcon operates within a highly competitive environment. In contact lenses, increased product entries from contact lens manufacturers in Asia are posing a massive threat. The market for contact lenses is intensely competitive. It is characterized by declining sales volumes for older and reusable product lines and growing demand for daily lenses and advanced materials lenses.
Key Picks
Some other top-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , DaVita (DVA - Free Report) and Haemonetics (HAE - Free Report) . While Hims & Hers Health sports a Zacks Rank #1 (Strong Buy), DaVita and Haemonetics carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Hims & Hers Heath shares have surged 138.2% in the past year. Estimates for the company’s earnings have increased from 18 cents to 20 cents for 2024 and from 33 cents to 38 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it delivered an earnings surprise of a staggering 150%.
Estimates for DaVita’s 2024 earnings per share have remained constant at $9.62 in the past 30 days. Shares of the company have surged 35.4% in the past year compared with the industry’s 11.5% growth.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 29.4%. In the last reported quarter, it delivered an earnings surprise of 21.4%.
Estimates for Haemonetics’ fiscal 2025earnings per share have moved north by 0.4% to $4.57 in the past 30 days. Shares of the company have dipped 1.3% in the past year.
HAE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.2%. In the last reported quarter, it delivered an earnings surprise of 2.3%.