Updated Aug 16 at 12:56am ET.
Follow Alcon to never miss an important update.
Alcon raised its profit goals for the year because it expects to get about $60 million back from the U.S. government. This money is a refund for tariffs, which are taxes paid on goods brought into the country.
Getting this cash back lowers the total hit from these taxes to between $40 million and $90 million for the year. For a company that makes most of its money from surgical supplies and contact lenses, lower costs like this help protect its profit margins.
Source: Reuters
Alcon brought in $2.79 billion in revenue last quarter, which was better than the $2.72 billion analysts expected. Profits also came in higher at $0.84 per share, beating the $0.77 estimate.
This growth was driven by new product launches and steady sales of surgical supplies. Because surgeons use Alcon's specific tools and fluids for every procedure, the company has a reliable stream of income that grows as more people seek eye care. These results show the business is successfully moving more patients toward its newer, higher-priced lenses.
Analysts issued a flurry of positive updates following the company's strong second-quarter earnings report. Most analysts, 14 of 26, rate the stock a buy, and the average target of $76 is roughly 3% above the current price.
Management has a habit of setting a bar they can clear, beating profit expectations in six of the last eight quarters. It shows a predictable business that is executing well.
| Expectation | |
|---|---|
| EPS | $0.90 |
| Revenue | $2.72B |
