The Top 5 Analyst Questions From Bausch + Lomb's Q1 Earnings Call
Is now the time to buy BLCO? Find out in our full research report (it's free).
Revenue: $1.14 billion vs analyst estimates of $1.15 billion (3.5% year-on-year growth, 0.7% miss)
Adjusted EPS: -$0.07 vs analyst estimates of $0.02 (significant miss)
Adjusted EBITDA: $126 million vs analyst estimates of $163.4 million (11.1% margin, 22.9% miss)
The company lifted its revenue guidance for the full year to $5.05 billion at the midpoint from $4.98 billion, a 1.5% increase
EBITDA guidance for the full year is $875 million at the midpoint, below analyst estimates of $921.9 million
Operating Margin: -7.3%, down from 0.5% in the same quarter last year
Constant Currency Revenue rose 5.2% year on year (20.2% in the same quarter last year)
Market Capitalization: $4.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Patrick Wood (Morgan Stanley) asked about the impact and customer response to the enVista recall. CEO Brent Saunders reported that most customers appreciated the company's transparency and commitment to safety, with many planning to resume use as soon as supply is restored.
Young Li (Jefferies) inquired about consumer demand trends, particularly in the U.S. and China. Saunders explained that consumption remained strong, with little sign of discretionary pullback, but noted ongoing retailer inventory destocking as a near-term factor.
Joanne Wuensch (Citi) requested updates on the contact lens pipeline and market dynamics. Saunders and Head of R&D Yehia Hashad highlighted the progression of biomimetic lens and myopia control programs, emphasizing that new products are designed to leverage existing manufacturing infrastructure.
Unidentified Analyst (Wells Fargo) sought clarity on the timing and magnitude of tariff impacts. CFO Sam Eldessouky projected that immediate actions would shield margins in the first half, with more balanced exposure in the second half, depending on additional mitigation steps.
Robbie Marcus (JPMorgan) questioned the exclusion of tariffs from official guidance and potential covenant risks. Saunders and Eldessouky underscored the fluidity of tariff policy and expressed confidence in the company's ability to remain in compliance through ongoing mitigation.
In the upcoming quarters, our analysts will be watching (1) the pace of enVista IOL restocking and adoption in the U.S. and international markets, (2) the effectiveness of management's tariff mitigation efforts and any developments in trade policy, and (3) continued sales momentum in flagship brands like MIEBO, XIIDRA, and Daily SiHy contact lenses. Progress in advancing clinical pipeline assets and the launch timing for new IOL and contact lens products will also be important indicators.
Bausch + Lomb currently trades at $12.48, down from $13.72 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free).
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