Owning Alcon
While this quarter's results may not justify the eye-care company's stock price, they were nevertheless still respectable. Revenue was up a bit more than 8% and topped out in the double digits, if you exclude the impact of foreign currency. All three major units posted sales growth, though pharmaceuticals were again the leader.
Below the revenue line, there's still plenty to like. Alcon's gross margins, already at a high level, climbed again in the first quarter, and operating margins, too, were higher on a year-over-year basis when you adjust for the impact of stock compensation expenses. All in all, even with those costs, net income grew by more than 18%.
If analyst chatter is to be believed (I'll let you all judge for yourself), part of the reason for concern here now is the sales of the new ReSTOR intraocular lens. This is a tough market, and there's a fair bit of concern about how competition between Alcon and rivals like Advanced Medical Optics
On the pharmaceutical side, there wasn't a lot in the way of major positive news. A collaboration with Amgen
Alcon might get some added sales because of troubles at Bausch & Lomb
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).