Alcon Inc. (ALC) reported mixed results for the second quarter, exceeding earnings estimates but falling short of revenue expectations. The company announced earnings of 74 cents per share, surpassing the analyst consensus of 73 cents per share. However, revenue for the quarter came in at $2.48 billion, slightly missing the analyst consensus estimate of $2.52 billion.
Despite the mixed performance, Alcon’s Chief Executive Officer, David J. Endicott, expressed optimism about the company’s future. He highlighted the robust demand for Alcon’s innovative products, their balanced geographic footprint, and the strong execution of their team. Endicott emphasized that these factors contributed to continued sales and earnings growth, as well as robust cash generation. He also outlined the company’s focus on preparing for upcoming product launches, which they believe will position them for significant growth in 2025 and beyond.
Alcon’s guidance for fiscal year 2024 indicates earnings between $3.00 and $3.10 per share, with revenue projected to reach $9.9 billion to $10.1 billion.
Following the earnings announcement, several analysts adjusted their price targets for Alcon stock. Needham analyst David Saxon maintained his Buy rating for Alcon, raising the price target from $101 to $107. Baird analyst Jeff Johnson also maintained an Outperform rating, increasing the price target from $104 to $110. BTIG analyst Ryan Zimmerman maintained his Buy rating, increasing the price target from $96 to $98. Oppenheimer analyst Steven Lichtman maintained an Outperform rating, raising the price target from $103 to $110. Finally, Wells Fargo analyst Larry Biegelsen maintained his Overweight rating, increasing the price target from $94 to $105.
Overall, analysts remain optimistic about Alcon’s future prospects, with the majority of analysts maintaining their Buy or Outperform ratings and increasing their price targets. This suggests that despite the mixed second-quarter results, the analysts believe Alcon is well-positioned for continued growth in the coming years.
