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Investing.com -- Alcon (NYSE:ALC) AG (SIX:ALCC) missed first-quarter earnings expectations and cut its full-year guidance, sending shares down more than 8% on Wednesday amid broad softness in its Surgical and Vision Care segments.
The company reported net sales of $2.45 billion for the quarter, up 0.3% year-over-year, or 2.6% in constant currency. The result missed both BTIG’s estimate and the Street’s estimate of $2.51 billion.
Surgical revenue totaled $1.33 billion, down 0.5% from a year ago, or up 2.5% excluding currency.
That fell short of BTIG’s estimate of $1.38 billion and consensus at $1.37 billion. Consumables rose 3.8%, offset by declines in Implantables and Equipment.
Implantables fell 3% and were flat in constant currency, while Equipment and Other dropped 9.1%, due to lower demand for legacy cataract and vitreoretinal systems.
Alcon said its Unity platform is not expected to contribute meaningfully until the second half of the year.
Vision Care sales rose 1.3% to $1.12 billion, or 3.3% in constant currency, below BTIG and consensus expectations.
Contact Lenses grew 2.5%, led by innovations in multifocals and torics. Ocular Health declined 0.7%, with growth driven by Systane and price increases.
Alcon noted a 3% benefit in the prior year from China eye drop sales that have since been divested.
Core earnings per share were $0.73, below BTIG’s estimate of $0.79 and consensus of $0.75. The company cited a $0.03 per-share impact from dilution related to its acquisition of Aurion Biotech.
Alcon cut its 2025 core EPS forecast to $3.05–$3.15, from $3.15–$3.25, including about $0.10 of pressure from recent business development.
It also lowered its core operating margin guidance to 20%–21% from 21%–22%. First-quarter core operating margin was 20.8%, above the Street’s 20.5% estimate.
Sales guidance was revised to $10.4 billion–$10.5 billion, slightly higher than the prior $10.2 billion–$10.4 billion range due to favorable currency.
Growth is now expected at 6%–7% constant currency, down from 6%–8%. A $80 million tariff headwind is expected to be fully offset by operational actions and foreign exchange.