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On Friday, H.C. Wainwright analyst Yi Chen revised the price target for Bausch & Lomb Corp. (NYSE:BLCO) shares, reducing it to $20.00 from the previous $23.00, while maintaining a Buy rating on the stock. The adjustment follows Bausch + Lomb ’s recent announcement of its financial performance for both the fourth quarter and the full year of 2024.
Earlier this week, Bausch + Lomb disclosed its fourth-quarter revenue of $1,280 million, marking a 9% year-over-year increase and surpassing the analyst’s forecast of $1,261 million. The company highlighted that on a constant currency basis, the revenue growth would have been 11%, but was adversely affected by foreign exchange losses amounting to $17 million. The net loss reported was $3 million, or ($0.01) per share, which was notably better than the anticipated loss of $42 million. However, the adjusted net income came in at $89 million, or $0.25 per share, falling short of the $95 million estimate. InvestingPro data shows that while the company isn’t currently profitable, analysts expect positive earnings in 2025, with a forecasted EPS of $0.65.
The company experienced growth across all its segments during the fourth quarter. Vision Care segment revenue reached $723 million with a 9% growth, Surgical segment revenue hit $231 million with a 13% increase, and Pharmaceuticals segment revenue grew by 6% to $326 million. For the full year of 2024, Bausch + Lomb reported total revenue of $4,791 million, a 16% rise from the previous year. The net loss for the year was substantial at $317 million, or ($0.90) per share, while the adjusted net income was $204 million, or $0.58 per share. The company maintains a healthy gross profit margin of 61%, according to InvestingPro, which offers detailed financial health scores and additional insights in its comprehensive Pro Research Report, available for over 1,400 US stocks.
Looking ahead, management has set the revenue guidance for 2025 to be in the range of $4,950 million to $5,050 million, which would represent a constant currency growth of 5.5% to 7.5%, along with an adjusted EBITDA forecast between $900 million and $950 million. They also anticipate foreign exchange headwinds to impact full-year revenue by approximately $100 million. In light of these factors and the updated projections, H.C. Wainwright has reiterated its Buy rating but lowered its 12-month price target for Bausch & Lomb.
In other recent news, Bausch & Lomb Corporation reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.25 and revenue of $1.28 billion, both exceeding analyst expectations. The company achieved a 17% organic revenue growth for the year, highlighting its robust performance and market strength. Looking forward, Bausch & Lomb has projected revenue growth between 5.5% and 7.5% for 2025, with anticipated revenue ranging from $4.95 billion to $5.05 billion. The company also expects adjusted EBITDA to be between $900 million and $950 million, indicating a focus on margin expansion and profitability improvements.
In other developments, BofA Securities and JPMorgan both lowered their price targets for Bausch & Lomb shares to $17, citing concerns about the company’s future guidance and competitive pressures. BofA maintained its Underperform rating, while JPMorgan kept a Neutral rating, reflecting cautious optimism about the company’s future performance. Analysts have noted potential risks related to the company’s ownership structure and its relationship with Bausch Health.
The company continues to lead in the contact lens and dry eye markets, with significant gains in market share across all segments. Bausch & Lomb’s innovative efforts in eye care products and technology integration remain a focal point, as emphasized by CEO Brent Saunders. The company is committed to sustaining growth momentum despite challenges such as competitive market dynamics and potential supply chain disruptions.
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