Nov 12 (Reuters) - Swiss-American eye care group Alcon
reported third-quarter results broadly in line with
market expectations and reiterated its annual outlook late on
Tuesday, alleviating some investor concerns amid acquisition
difficulties and higher U.S. tariffs.
WHY IT'S IMPORTANT
Alcon is a global leader in the eye care market with
significant exposure to the United States, which accounted for
roughly 45% of its quarterly sales.
The earnings report comes amid complications in Alcon's planned
acquisition of U.S.-based contact lens manufacturer Staar
Surgical ( STAA ). The deal, agreed in early August, has faced
strong resistance from Staar shareholders.
On Friday, Staar amended its merger agreement with Alcon to
introduce a new 30-day go-shop period, allowing it to evaluate
alternative takeover proposals.
CONTEXT
Alcon is preparing for a $100 million increase in gross
costs due to U.S. tariffs. The company said it can offset this
impact via currency exchange gains and operational adjustments,
but recent pressure on margins indicates the challenge is
significant.
The company had cut its net sales outlook in August due to
tariff pressures. This time, it maintained the guidance.
BY THE NUMBERS
Alcon reported a 7% rise in its quarterly revenue to $2.6
billion, helped by demand for its new products. That matched
analysts' average forecast, data compiled by LSEG showed.
Growth was driven by recent equipment launches, particularly
cataract surgery platform Unity VCS, which drove revenue in the
surgical business unit 6% higher, the company said.
MARKET REACTION
Shares of Alcon jumped 7% by 0808 GMT, with analysts from J.P.
Morgan saying there was "a little relief" among investors after
the outlook was confirmed.