Yahoo Finance Bausch & Lomb Corp (BLCO) Q1 2024 Earnings: Surpasses Revenue Estimates Amidst Net Loss Widening
Revenue: Reported at $1.099 billion, up 18% year-over-year, surpassing estimates of $1.063 billion.
Net Loss: Increased to $167 million from $90 million year-over-year, reflecting higher interest expenses and tax provisions.
Earnings Per Share (EPS): GAAP EPS at -$0.48, with adjusted EPS meeting estimates at $0.07.
Adjusted EBITDA: Rose to $180 million, a $39 million increase from the previous year, driven by higher sales offset by increased launch costs.
Pharmaceuticals Segment Growth: Revenue soared by 66% to $267 million, driven by successful acquisitions and product launches.
Cash Flow: Operational cash flow turned positive at $41 million, a significant improvement from a cash use of $56 million in the prior year.
2024 Full-Year Outlook: Raised constant currency revenue growth guidance to 13-15%, with anticipated revenue between $4.6 billion and $4.7 billion.
Bausch & Lomb Corp (NYSE:BLCO) released its 8-K filing on May 1, 2024, revealing a notable increase in revenue but also a widening net loss for the first quarter of 2024. The company reported a revenue of $1.099 billion, a significant 18% increase compared to $931 million in the same quarter the previous year, surpassing the analyst estimates of $1.063 billion. However, the net loss attributable to Bausch & Lomb widened to $167 million from $90 million year-over-year.
About Bausch & Lomb Corp
Bausch & Lomb, a prominent player in the global eye health sector, operates through three segments: Vision Care, Surgical, and Pharmaceuticals. The company, which spun off from Bausch Health and became public in 2022, offers a diverse range of products across these segments, including contact lenses, surgical instruments, and ophthalmic pharmaceuticals. With a rich history dating back to 1853, Bausch & Lomb continues to innovate and expand its footprint in the eye care industry.
Segment Performance and Operational Highlights
The revenue growth was driven by robust performance across all business segments. The Vision Care segment, which includes products like Daily SiHy lenses and LUMIFY, saw an 8% increase in revenue, reaching $635 million. The Surgical segment also reported an 8% growth, totaling $197 million, attributed to higher sales of consumables and equipment. Notably, the Pharmaceuticals segment experienced a remarkable 66% surge in revenue, amounting to $267 million, primarily due to the successful acquisition and integration of XIIDRA and strong performance of new products like MIEBO.
Financial Health and Challenges
Despite the impressive revenue growth, Bausch & Lomb faced challenges reflected in the significant net loss of $167 million, primarily due to increased interest expenses and tax provisions. The company also reported an operating income of $6 million, a slight improvement from an operating loss of $2 million in the previous year. Adjusted EBITDA stood at $180 million, up from $141 million, indicating some operational efficiency gains amidst higher sales.
Cash Flow and Earnings Per Share
Cash flow from operations showed a positive shift, recording $41 million compared to a cash use of $56 million in the prior year's first quarter. This improvement was partly due to the acquisition of XIIDRA, although offset by increased inventories. The GAAP earnings per share (EPS) were reported at ($0.48), compared to ($0.26) last year, while adjusted EPS met analyst expectations at $0.07.
Looking Ahead
Bausch & Lomb has raised its full-year 2024 revenue growth guidance in constant currency from 12-14% to 13-15%, indicating confidence in continued robust performance across its segments. However, the company anticipates foreign exchange headwinds of approximately $90 million for the year, a notable increase from previous estimates of $40 million.
As Bausch & Lomb navigates through its financial year, investors and stakeholders will be closely monitoring how it balances growth opportunities against operational challenges and external economic factors.
Conclusion
The first quarter of 2024 has been a mixed bag for Bausch & Lomb, showcasing strong revenue growth and strategic acquisitions but also highlighting areas of concern such as widening losses and increased operational costs. The company's ability to innovate and expand in the eye care market remains a key watchpoint for the future.
Explore the complete 8-K earnings release (here) from Bausch & Lomb Corp for further details.
This article first appeared on GuruFocus.
