Alcon (NYSE: ALC), the eye-care group, cut its 2024 forecasts and missed market expectations for third-quarter sales on Tuesday evening, as a soft U.S. market hit its surgical business.
Alcon, whose biggest market is the U.S. making up nearly half of its revenue, said it expected annual net sales to grow by 6-7% in constant currency terms, compared to the previous 7-9% forecast.
It sees 2024 core diluted earnings per share of between $3.00 and $3.05, bringing the top of the range down from $3.10.
The Swiss-American group posted a 6% rise in its third-quarter sales to $2.43 billion, but missed analysts’ average forecast by 1.4%, according to LSEG data.
Slower market conditions in the U.S. impacted the surgical division, which posted a slower-than-expected 5% rise in sales, versus a consensus of 7.6% cited by J.P. Morgan in a research note.
Alcon also saw headwinds in its vision care division due to declines in contact lens care in its international markets. The unit posted 7% sales growth, below a consensus of 8.5%.
The company’s New York-listed shares closed 5.8% lower on Tuesday.
Ryan Zimmerman, an analyst at BTIG, said that while Alcon had been pointing to softer U.S. market dynamics for a while, their extent was proving more significant than anticipated.
“That said, we continue to look to full-year 2025 for several new products that are likely to boost growth,” Zimmerman added.
Alcon (NYSE: ALC), spun off from Novartis (NYSE: NVS) in 2019, is betting on new product launches to accelerate sales growth in 2025 and beyond.
