Alcon (NYSE:ALC) popped after beating expectations on the top and bottom lines in the first quarter. Alcon reaffirmed its full-year revenue guidance and said core diluted earnings per share for the year should come in a range that encompasses the consensus estimate of analysts.
Q1 Non-GAAP EPS registered at $0.70, which beat estimates by $0.09, on revenue of $2.3 Billion, which beats by $60 million. Net sales of $9.2-$9.4 Billion vs $9.28-Billion consensus
Also lending the stock upward mobility was Baird’s upgrade to outperform from neutral and raised it price target to $90 from $75 per share after the contact lens maker topped Street forecasts with its Q1 2023 financials.
The analyst Jeff Johnson points out that Alcon exceeded the firm’s and Street forecasts for adj. gross margin and operating margin while growth in its contact lens business accelerated despite headwinds in the implantable segment.
The analyst argues that given the potential of surgical and contact lens businesses to remain defensive in the current macroenvironment, “we see a solid path higher for this stock moving forward.”
Reasoning for the upgrade, Johnson argued that he is more optimistic about the company’s long-term potential for margin improvement due to its Q1 performance for margins and a sequential improvement in the contact lens business.
ALC shares dropped a penny to $15.34.
