Shares of implantable lenses manufacturer STAAR Surgical Company (STAA 0.00%) are falling sharply on Tuesday and were down by 4.9% as of 2:08 p.m. EST, after dropping by as much as 12.3% earlier in the day. The company did not report any news, but the most likely reason it is losing altitude is that the broader market is having a difficult day of its own.
The Nasdaq Composite opened sharply lower on Tuesday, a decline fueled by some of the largest technology companies in the U.S. The Dow Jones and the S&P 500 are also down as of this writing. This market rout seems to have dragged down other companies such as STAAR Surgical. Note that the healthcare company is gearing up to report its fourth-quarter and full-year 2020 financial results after the market close on Wednesday.
At the very least, STAAR Surgical's top line will likely come in above the consensus analyst estimates. For its fourth quarter of 2020, which ended on Jan. 1, the company expects to report net sales of $46 million. On average, Wall Street analysts projected the company's net sales for the fourth quarter would be $43.85 million.
STAAR Surgical also thinks it will record net sales of $163 million for the full fiscal year 2020, which compares favorably to the average estimate of $161.73 million. Depending on other factors (such as the company's adjusted earnings and its guidance for the fiscal year 2021), STAAR Surgical's stock could fall even after it releases its quarterly update.
Investors shouldn't worry about daily fluctuations in stock prices. What's important to note about STAAR Surgical is that it performed decently well last year despite headwinds caused by the pandemic. Analysts expect the company's revenue to increase at an annual rate of 30% through the next five years. These factors (and others) make STAAR Surgical's stock worth considering, regardless of its struggles on the stock market today.