Why Medical Device Company Alcon Shares Are Sliding Today

Alcon Inc ALC shares are trading lower by around 5% after it reported worse-than-expected Q3 FY23 results.

Sales rose 8% Y/Y (+9% Y/Y in constant currencies) to $2.30 billion, missing the consensus of $2.35 billion.

By segments, Surgical revenue increased 5% Y/Y to $1.28 billion, and Vision Care revenue was up 13% Y/Y to $1.03 billion, both driven by growth across all businesses. 

Core operating margin expanded to 19.5% from 17.2% a year ago, led by improved underlying operating leverage from higher sales and manufacturing efficiencies. 

Core EPS of $0.66, up 32% Y/Y (+41% Y/Y in cc), missing the consensus of $0.67.

Operating cash flow stood at $937 million, and cash stood at $1.1 billion in the nine months ended FY23.

FY23 Outlook: Alcon narrowed guidance for core EPS to $2.70-$2.75 (vs. $2.75 est.) from $2.70-$2.80 and net sales of $9.3 billion-$9.4 billion (vs consensus of $9.49 billion) from $9.3 billion-$9.5 billion.

Also Read: Alcon Gears Up For Q3 Print; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts

Price Action: ALC shares are down 4.68% at $71.44 premarket on the last check Wednesday.