In This Article:
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Total Revenue: $9.8 billion for the full year 2024, with a 6% sales growth.
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Core Diluted EPS: Increased by 16% to $3.5.
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Free Cash Flow: Record $1.6 billion in 2024.
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Fourth Quarter Revenue: $2.5 billion, up 6% year-over-year.
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Surgical Franchise Revenue: $1.4 billion, up 5% year-over-year.
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Implantable Sales: $456 million, up 2% year-over-year.
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Consumables Sales: $738 million, up 7% year-over-year.
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Equipment Sales: $229 million, up 2% year-over-year.
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Vision Care Revenue: $1.1 billion, up 7% year-over-year.
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Contact Lens Sales: $638 million, up 11% year-over-year.
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Ocular Health Sales: $416 million, up 2% year-over-year.
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Core Gross Margin: 62.7%, up 70 basis points.
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Core Operating Margin: 20.1%, up 130 basis points year-over-year.
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Fourth Quarter Diluted Earnings: $0.72 per share, up 3% from last year.
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2025 Revenue Guidance: $10.2 billion to $10.4 billion, with 6% to 8% constant currency sales growth.
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2025 Core Operating Margin Guidance: Between 21% and 22%.
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2025 Core Diluted Earnings Guidance: $3.15 to $3.25 per share, 8% to 11% constant currency growth.
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Proposed Dividend: Increase to $0.28 per share.
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Share Repurchase Program: Up to $750 million over the next three years.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alcon Inc (NYSE:ALC) reported a strong financial performance for 2024 with sales reaching $9.8 billion, reflecting a 6% growth above market expectations.
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The company achieved a 16% increase in core diluted EPS to $3.5 and generated a record $1.6 billion in free cash flow.
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Alcon Inc (NYSE:ALC) is preparing to launch a rich product pipeline, including the Unity VCS faco device and PanOptix Pro PCIOL, which are expected to drive future growth.
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The company's contact lens segment showed robust growth, with sales up 11% in the fourth quarter, driven by innovative lenses like Precision 7.
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Alcon Inc (NYSE:ALC) announced a proposed dividend increase and a $750 million share repurchase program, reflecting confidence in its financial stability and commitment to shareholder returns.
Negative Points
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The US market for advanced technology IOLs (ATIOL) faced competitive pressures, leading to slower growth and impacting overall implantable sales.
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Alcon Inc (NYSE:ALC) anticipates foreign exchange headwinds to impact 2025 earnings, with an expected $0.15 pressure on core diluted earnings per share.
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The company faces challenges in the US contact lens market due to increased competition and discounting by competitors, which may affect pricing dynamics.
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Alcon Inc (NYSE:ALC) expects operating margin expansion to be back-half loaded in 2025 due to front-end loaded investments in new product launches.
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The company's gross margin may face pressure from higher cost inventory and increased equipment sales, which typically have lower margins.