Swiss-American eye care firm Alcon Inc (NYSE:ALC) stock slumped on Wednesday after the company cut its 2025 outlook late on Tuesday, citing increased tariff impact.
The company forecasts a full-year gross tariff impact of around $100 million from $80 million expected previously.
Alcon reported second-quarter sales of $2.58 billion, up 4% year over year, missing the consensus of $2.63 billion.
Also Read: Alcon Expands Vision Correction Portfolio With STAAR Surgical Acquisition
Surgical net sales, which include implantables, consumables, and equipment/other, were $1.5 billion, an increase of 2% on a reported basis and 1% on a constant currency basis.
Implantables net sales were $456 million, a decrease of 2%, reflecting soft market conditions and competitive pressures.
Consumables net sales were $777 million, an increase of 6%. Excluding favorable currency impacts of 2%, consumables net sales increased by 4% in constant currency. Growth was led by vitreoretinal and cataract consumables, particularly in international markets, and price increases, and reflects soft market conditions.
Equipment/other net sales of $222 million, down 1% constant currency, as declines in legacy equipment were partially offset by sales of the recently launched Unity VCS and Voyager DSLT devices.
Vision Care net sales, which include contact lenses and ocular health, were $1.1 billion, an increase of 6% on a reported basis and 5% on a constant currency.
Contact lenses’ net sales were $692 million, up 9% and 7% on constant currency, primarily driven by product innovation and price increases.
Ocular health net sales were $430 million, an increase of 2%, led by the portfolio of eye drops, partially offset by declines in contact lens care.
The company reported adjusted earnings of 76 cents per share, beating the consensus of 72 cents.
Alcon reported an operating margin of 9.6% in the second quarter, below last year’s 12.8%.
“Alcon is exiting the second quarter with solid momentum, despite a relatively soft surgical market in the first half of the year,” said David J. Endicott, Alcon’s Chief Executive Officer. “Robust early demand for our recent product launches, including Unity VCS, Voyager, PanOptix Pro, Precision7, Systane Pro PF, and Tryptyr, has been encouraging. While it’s still early, these launches position us to accelerate top-line growth, generate cash, and deliver long-term value for our shareholders.”
Outlook
Alcon affirmed fiscal year 2025 adjusted earnings of $3.05-$3.15 versus consensus of $3.12.
The company lowered 2025 sales guidance from $10.4 billion-$10.5 billion to $10.3 billion-$10.4 billion, versus the consensus of $10.48 billion.
Core operating margin is expected to be between 19.5% and 20.5% compared with the previous guidance of 20% to 21%.
Price Action: ALC stock is trading lower by 8.58% to $82.39 at last check Wednesday.
Read Next:
Photo via Shutterstock
