Alcon Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-20
Alcon Reports Q2 2024 Financial Results
Alcon (SIX/NYSE:ALC), the global leader in eye care, has announced its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Year-Over-Year | Consensus Estimates | Performance vs. Estimates |
|---|---|---|---|---|
| Total Revenue | $2.5 Billion | +3% (6% cc) | $2.52 Billion | Slightly below estimate |
| Diluted Earnings Per Share (EPS) | $0.45 | +32% (47% cc) | $0.73 | Below estimate |
| Core Diluted Earnings Per Share | $0.74 | +7% (15% cc) | N/A | N/A |
Alcon's Q2 2024 revenue was $2.5 billion, a 3% increase from the same period last year, rising to 6% in constant currency. The diluted earnings per share (EPS) improved by 32% to $0.45, reflecting a 47% increase on a constant currency basis. However, the reported EPS fell below Wall Street's consensus estimate of $0.73.
Revenue Performance by Segment
| Segment | Q2 2024 Net Sales | Growth (Reported) | Growth (Constant Currency) |
|---|---|---|---|
| Surgical | $1.4 Billion | +3% | +6% |
| - Implantables | $464 Million | +6% | +9% |
| - Consumables | $736 Million | +3% | +5% |
| - Equipment/Other | $223 Million | -3% | -1% |
| Vision Care | $1.1 Billion | +4% | +6% |
| - Contact Lenses | $636 Million | +7% | +9% |
| - Ocular Health | $423 Million | -1% | +2% |
The company's surgical segment posted a revenue increase of 3% to $1.4 billion, driven primarily by sales of implantables and consumables. In particular, implantables saw a 6% increase (9% on a constant currency basis), led by advanced technology intraocular lenses in international markets. Conversely, the equipment/other segment experienced a 3% decline, reflecting cooling demand for cataract equipment in international markets.
The vision care segment saw robust growth, with a 4% increase in revenue to $1.1 billion, boosted by a 7% rise in the contact lenses category, which grew 9% on a constant currency basis due to product innovation and price increases. However, ocular health product sales declined by 1%, although it managed a 2% increase on a constant currency basis.
Comments from Company Officers
"We are pleased with our solid second-quarter results, which were driven by robust demand for our innovative products, our balanced geographic footprint, and strong execution by our team," said David J. Endicott, Chief Executive Officer. "As we look to the second half of the year, our focus will be on preparing for product launches that will position us well for our next phase of growth in 2025 and beyond."
Dividends and Share Repurchase Program
No dividends or share repurchase programs were announced in this report.
Forward Guidance
The company has updated its 2024 outlook, stating that aggregated markets are expected to grow in line with historical averages (mid-single digits). The guidance assumes prevailing exchange rates as of the end of July 2024 and approximately 498 million weighted-averaged diluted shares.
Stock Price Movement
After the earnings release, Alcon's stock showed a positive movement with a 0.25% increase.
For more details and a full review of Alcon's Q2 2024 earnings, please visit their Investor Relations website .
Note: All financial data presented here are sourced directly from Alcon's earnings release and associated documents. No data has been inferred or approximated.
