Alcon (SIX/NYSE:ALC) reported fourth-quarter revenues that beat the consensus of Wall Street analysts, with earnings in-line with expectations.
The Geneva-based eye care tech company yesterday evening also released 2023 guidance that was ahead of The Street’s consensus. However, Alcon’s actual Q4 results showed slowing sales growth as the company swung to a loss.
Alcon lost $97 million, or 20¢ per share, off of $2.2 billion during the quarter that ended Dec. 31, 2022. The company swung to a loss compared with Q4 2021, when it earned $139 million, or 28¢ per share. Sales were up 1%.
Adjusted to exclude one-time items, Alcon had a Q4 EPS of 42¢. The result was in-line with The Street, where analysts expected EPS of 42¢ and sales of $2.15 billion.
Alcon’s Surgical business sales were up 1%, to $1.3 billion. The Vision Care business was up 1%, to $881 million.
“The Alcon team delivered a strong 2022 despite a consistently challenging macroeconomic environment, including inflationary pressure, supply chain headwinds and a strong US dollar,” Alcon CEO David J. Endicott said in a news release. “Alcon’s performance is a testament to the resilience of our markets and the underlying strength of our business as we continue to drive growth and earnings while operating more efficiently.”
Alcon expects accelerated growth in 2023
This year, Alcon expects revenue to grow 6–8%, to $9.2–9.4 billion. More efficient operations could boost core diluted EPS 16–20%, to $2.55–2.65.
“As we look to 2023, we will continue to focus on accelerating innovation, commercial execution and ultimately delivering sales and earnings growth to create long-term shareholder value,” Endicott said.
David Saxon at Needham & Co. described the guidance as strong: “We are encouraged with ALC’s 2023 financial guidance and believe it should see above-peer EPS growth over the next few years, and we reiterate our Buy rating.”
Investors reacted by sending ALC shares down to more than 2%, to $68.76.