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Alcon's Q1 Sales Boosted By Equipment, Implantables In Surgical Segment, FY21 Outlook In-Line With Expectations

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Alcon's Q1 Sales Boosted By Equipment, Implantables In Surgical Segment, FY21 Outlook In-Line With Expectations
  • Alcon AG (NYSE: ALCreported first-quarter FY21 sales of $1.9 billion, an increase of 5% Y/Y on a reported basis and 2% on a constant currency basis, slightly below the consensus of $1.92 billion.
  • Core diluted EPS of $0.49 beat the consensus of $0.45, and diluted EPS of $0.17 was a turnaround from a loss of $0.12 a year ago.
  • Surgical net sales of $1.1 billion increased 9% Y/Y, or 7% on a constant currency basis, primarily driven by demand for cataract and refractive equipment and other refractive products and continued strength in PanOptix and the launch of Vivity.
  • Consumables sales were similar to the previous year's levels due to the continued impact of COVID-19 on surgical procedures.
  • Vision Care net sales of $0.8 billion declined 1% Y/Y or 3% on a constant currency basis. Contact lens sales benefited from the recent Precision1 sphere and toric launch but were more than offset by declines in international markets.
  • Sales in the prior-year period benefited from higher than normal demand in the U.S. for ocular health products at the beginning of the COVID-19 pandemic.
  • Core operating income of $344 million, with a margin of 18.0% up 140 bps, due to an increase in sales partially offset by increased investment in R&D and marketing and sales spend.
  • ALC declared its first dividend of CHF 0.10 per share, which is expected to be paid on May 6.
  • The company ended the first quarter with a cash of $1.6 billion, and its Free cash flow reached $48 million compared to an outflow of $60 million in the previous year.
  • Guidance: It sees FY21 core EPS of $1.85-$1.95 vs. $1.92 estimate, and sales of $7.8 -$8 billion versus an estimate of $7.87 billion.
  • Price Action: ALC shares are down 4.58% at $71.12 during the market trading session on the last check Wednesday.
 

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