Earnings Preview: What To Expect To When Eye Health Company Bausch + Lomb Reports Q4 Performance Later This Month

Eye health products company Bausch + Lomb Corp BLCO is scheduled to release its fourth-quarter and full-year 2023 financial results on February 21, 2024.

According to data from Benzinga Pro, the company expected to report sales of $1.107 billion, with EPS of $0.17.

RBC Capital writes that the fourth quarter of 2023 will continue to be influenced by currency headwinds (~$6 million RBC estimates versus management guidance of ~$26 million).

Also Read: Bausch + Lomb Expands OTC Eye Care Portfolio, Acquires JNJ’s Blink.

RBC Capital analysts Douglas Miehm and Sahil Dhingra expect Bausch + Lomb to report revenue of $1.159 billion and adjusted EBITDA of $224 million versus the consensus of around $228 million.

Noting the company’s investor conference in early January, RBC Capital highlights that Bausch + Lomb’s management indicated increased investments in the Miebo launch.

The company anticipates a consistent enhancement in EBITDA margins, projecting a slight improvement in 2024, surpassing previous expectations of approximately 200 basis points margin uplift following the Xiidra acquisition.

RBC Capital forecasts Bausch + Lomb’s fiscal year 2024 sales of $4.72 billion, up 14% Y/Y, and adjusted EBITDA of $868 million versus the consensus of $4.54 billion and $869 million, respectively.

Despite Xiidra TRx’s performance falling short of expectations, Miebo TRxs, as reported by IQVIA, have exceeded expectations. 

The focus of management’s commentary on Xiidra is expected to center around the Bausch + Lomb relaunch with a combined sales force. 

Regarding Miebo, attention will be on commentary regarding prescription trends, reimbursement timelines, and additional promotional spending. 

Alcon Inc ALC recently shared Phase 3 data for its dry-eye product (AR-15512) and plans to file a New Drug Application in mid-2024. 

Alcon’s management anticipates peak U.S. sales ranging from $250 million-400 million, indicating an increasingly competitive market for prescription dry-eye products in 2025.

The RBC analysts have lowered the price target from $20 to $19, with an unchanged Outperform rating.

Read Next: Bausch + Lomb Poised To Boost Presence In Growing Market With Potential $1.75B Drug Acquisition Deal From Novartis.

Price Action: BLCO shares are trading higher by 0.94% at $14.01 on the last check Friday.

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