Latest news with #STAA
Yahoo
07-08-2025
- Business
- Yahoo
STAAR Surgical (NASDAQ:STAA) Delivers Strong Q2 Numbers
Medical lens company STAAR Surgical (NASDAQ:STAA) announced better-than-expected revenue in Q2 CY2025, but sales fell by 55.2% year on year to $44.32 million. Its GAAP loss of $0.34 per share was 49.9% above analysts' consensus estimates. Is now the time to buy STAAR Surgical? Find out in our full research report. STAAR Surgical (STAA) Q2 CY2025 Highlights: Revenue: $44.32 million vs analyst estimates of $40.45 million (55.2% year-on-year decline, 9.6% beat) EPS (GAAP): -$0.34 vs analyst estimates of -$0.68 (49.9% beat) Adjusted EBITDA: -$14.94 million vs analyst estimates of -$24.95 million (-33.7% margin, 40.1% beat) Operating Margin: -67.6%, down from 12% in the same quarter last year Free Cash Flow was -$29.04 million compared to -$16.65 million in the same quarter last year Market Capitalization: $1.32 billion Company Overview With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, STAAR Surgical's 8.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. STAAR Surgical's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 14.3% over the last two years. This quarter, STAAR Surgical's revenue fell by 55.2% year on year to $44.32 million but beat Wall Street's estimates by 9.6%. Looking ahead, sell-side analysts expect revenue to grow 44.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will spur better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Adjusted Operating Margin STAAR Surgical was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 1.1% was weak for a healthcare business. Analyzing the trend in its profitability, STAAR Surgical's adjusted operating margin decreased by 62 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 57.3 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, STAAR Surgical generated an adjusted operating margin profit margin of negative 67.6%, down 79.6 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for STAAR Surgical, its EPS declined by 70.2% annually over the last five years while its revenue grew by 8.6%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into STAAR Surgical's earnings to better understand the drivers of its performance. As we mentioned earlier, STAAR Surgical's adjusted operating margin declined by 62 percentage points over the last five years. Its share count also grew by 9.2%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, STAAR Surgical reported EPS at negative $0.34, down from $0.15 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast STAAR Surgical's full-year EPS of negative $1.93 will reach break even. Key Takeaways from STAAR Surgical's Q2 Results We were impressed by how significantly STAAR Surgical blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid print. The stock remained flat at $26.85 immediately after reporting. So should you invest in STAAR Surgical right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
07-08-2025
- Business
- Yahoo
Staar Surgical (STAA) Reports Q2 Loss, Beats Revenue Estimates
Staar Surgical (STAA) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.56. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +87.50%. A quarter ago, it was expected that this maker of implantable lenses would post a loss of $0.59 per share when it actually produced a loss of $0.52, delivering a surprise of +11.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Staar Surgical, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $44.32 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.63%. This compares to year-ago revenues of $99 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Staar Surgical shares have added about 11.2% since the beginning of the year versus the S&P 500's gain of 7.1%. What's Next for Staar Surgical? While Staar Surgical has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Staar Surgical was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $87.83 million in revenues for the coming quarter and -$0.78 on $258.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Dental Supplies is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Becton Dickinson (BDX), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 7. This medical device manufacturer is expected to post quarterly earnings of $3.42 per share in its upcoming report, which represents a year-over-year change of -2.3%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. Becton Dickinson's revenues are expected to be $5.48 billion, up 9.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report STAAR Surgical Company (STAA) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Alcon Strikes $1.5 Billion Deal to Acquire STAAR Surgical
Alcon (ALC) on Tuesday agreed to acquire eye lens manufacturer STAAR Surgical (STAA) in a deal worth Sign in to access your portfolio
Business Insider
06-08-2025
- Business
- Business Insider
Staar Surgical Stock (STAA) Soars on $1.5B Alcon Deal
Staar Surgical (STAA) stock soared on Tuesday after the implantable lenses company reached an agreement with eye care company Alcon (ALC). This will have Alcon acquire all outstanding shares of STAA stock for $28 per share in cash. This represents a 51% premium to the stock's prior closing price and has a total equity value of approximately $1.5 billion. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Stephen Farrell, CEO of Staar Surgical, said, 'As a significantly larger company, Alcon has the capabilities and scale to accelerate EVO ICL adoption and bring our innovative technology to more surgeons and patients worldwide.' Staar Surgical and Alcon expect the deal to close within six to 12 months. It already has the support of both companies' boards of directors. Alcon also expects the deal to be accretive to its earnings in the second year after the deal is complete. Staar Surgical Stock Movement Today Staar Surgical stock was up 44.73% in pre-market trading on Tuesday, following a 4.11% rally yesterday. However, the shares have fallen 23.88% year-to-date and 51.2% over the past 12 months. Today's news came with heavy trading, as some 8 million shares changed hands, compared to a three-month daily average of about 678,000 units. Is Staar Surgical Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Staar Surgical is Hold, based on two Buy, two Hold, and a single Sell rating over the past three months. With that comes an average STAA price target of $19.29, representing a potential 4.33% upside for the shares.
Yahoo
27-05-2025
- Business
- Yahoo
1 Cash-Heavy Stock Worth Your Attention and 2 to Steer Clear Of
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two best left off your watchlist. Net Cash Position: $172.1 million (1.9% of Market Cap) Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms. Why Is NYT Not Exciting? Demand for its offerings was relatively low as its number of subscribers has underwhelmed Projected sales growth of 5.9% for the next 12 months suggests sluggish demand Waning returns on capital imply its previous profit engines are losing steam At $55.41 per share, The New York Times trades at 25.8x forward P/E. Read our free research report to see why you should think twice about including NYT in your portfolio, it's free. Net Cash Position: $136.4 million (14.8% of Market Cap) With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens. Why Do We Avoid STAA? Constant currency revenue growth has disappointed over the past two years and shows demand was soft Free cash flow margin dropped by 26.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up Diminishing returns on capital suggest its earlier profit pools are drying up STAAR Surgical is trading at $18.68 per share, or 3.2x forward price-to-sales. If you're considering STAA for your portfolio, see our FREE research report to learn more. Net Cash Position: $4.20 billion (2% of Market Cap) Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service. Why Are We Bullish on NOW? Demand is healthy as its current remaining performance obligations (cRPO) have averaged 22.3% growth over the last year, showing it's securing new contracts for services yet to be fulfilled Healthy operating margin of 12.9% shows it's a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends ServiceNow's stock price of $1,004 implies a valuation ratio of 15.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
