Staar Surgical dives on the T3 which beats the street, tightened forecasts
Staar Surgery (Nasdaq:STAA) Stocks took a hit after hours on third-quarter earnings that beat consensus forecasts.
STAA shares fell 4.4% to $67.50 apiece after the market closed today. MassDevice MedTech 100 Index – which includes shares of the world’s largest medical device companies – ended the day down 0.3%.
The Lake Forest, Calif.-based eye implant company posted profits of $10.3 million for the quarter. This equates to 21¢ per share on sales of $76 million for the three months ended September 30, 2022.
Staar Surgical recorded a net gain of 70.5% on sales growth of 30.3%. Higher costs associated with manufacturing projects offset Staar’s strong earnings. At the same time, currency fluctuations, mainly the Japanese yen and the euro, had a negative impact on sales.
EVO ICL sales growth supported the company’s performance despite macroeconomic headwinds.
Adjusted to exclude one-time items, earnings per share totaled 38¢. This amounts to 25¢ in front of Wall Street. Sales beat expectations and analysts forecast revenue of $74.95 million.
Staar CEO: Focusing on growth opportunities is ‘vital’
“Today, it is critical that Staar focuses on the significant growth opportunities we have with our premium EVO products,” said Caren Mason, President and CEO of Staar Surgical. “At the same time, our other low-margin products business, which accounts for approximately 5% of sales and consists of cataract IOLs, IOL injectors and injector parts, faced challenges. growing in the supply chain. Due to third-party materials and supply chain challenges that only affect our Other Products business, we will no longer be able to support Other Products as we always have. We will continue to support customers of other products until the end of 2023.”
Mason added that despite the challenges Staar faces, he expects ICL sales to grow 30% year-over-year. The company forecasts total sales of around $355 million for 2023. It expects to end this year with revenue of $285 million. This represents a decrease of $10 million from the previous forecast of $295 million.