STAAR Surgical Q3 sales fall on China comparison; sees gross margin improving

By Reuters News


Overview

  • U.S. implantable lens maker's Q3 net sales fell 12% yr/yr, but rose 21% excluding deferred China sales

  • Q3 net income and EPS declined yr/yr, but prior-year results were boosted by deferred China revenue

  • Company authorized $50 mln share buyback program


Outlook

  • STAAR Surgical expects fourth-quarter gross margins to rise above third-quarter levels

  • Company expects unit costs to improve further in 2027 as both production facilities run at full capacity

  • STAAR Surgical says China seasonality should moderate revenue and earnings in Q4, but not free cash flow


Result Drivers

  • CHINA SALES MIX - China sales rose 31% excluding deferred revenue, with higher average selling prices driven by increased EVO+ and toric lens adoption

  • OPERATIONAL TRANSITION - Completed move of all China-bound ICL manufacturing to Switzerland, expected to reduce tariff exposure and improve gross margin going forward

  • TEMPORARY COST PRESSURES - Gross margin was negatively affected by higher manufacturing costs from low production volumes, increased freight costs, tariffs, and inventory provisions; these pressures are expected to ease in Q4


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$83.41 mln

Q3 EPS

$0.11

Q3 Net Income

$5.58 mln

Q3 Gross Profit

$59.14 mln

Q3 Operating Income

$5.46 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

  • Wall Street's median 12-month price target for STAAR Surgical Company is $27.00, about 7.3% above its November 3 closing price of $25.17

  • The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 53 three months ago


Reuters Recommended Reads

  • Nov 3 - Germany's Fresenius Medical says Q3 results weighed by China; narrows forecast

  • Nov 4 - Zimmer Biomet Q3 sales beat estimates, raises FY outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk