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Bausch + Lomb Corporation (BLCO)
NYSE:BLCO
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Bausch + Lomb Corporation
(NYSE:BLCO)
55Neutral
Positive Factors
Product Performance
SiHy Dailies posted highly impressive revenue growth in 2024, maintaining the view that it can drive total BLCO revenue growth in 2025.
Revenue Growth
The company continued to deliver revenue growth across all three segments in 4Q24: Vision Care revenue was $723M with 9% YoY growth; Surgical revenue was $231M with 13% YoY growth; and Pharmaceuticals revenue was $326M with 6% YoY growth.
Sales Performance
Q4 sales and EPS exceeded consensus expectations, driven by strong performance in Vision Care and Surgical segments.
Negative Factors
Financial Performance
The recall is expected to have a negative impact on Q1 earnings and likely result in lower full year guidance because premium IOLs were a key growth driver for 2025.
Guidance
2025 guidance, particularly EBITDA, likely disappointed investors even though BLCO signaled lower expectations in early Jan.
Product Recall
Bausch & Lomb announced a voluntary recall of intraocular lenses on its enVista platform due to a small number of cases of toxic anterior segment syndrome.
Bausch + Lomb Corporation (BLCO) vs. S&P 500 (SPY)
Market Cap
$4.03B
Dividend YieldN/A
Average Volume (3M)741.73K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth15.56%
EPS Growth-21.60%
CountryUS
Employees13,500
SectorHealthcare
Sector Strength71
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.90
Shares Outstanding353,273,200
10 Day Avg. Volume1,004,696
30 Day Avg. Volume741,729
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.14
Price to Cash Flow (P/CF)62.30
P/FCF Ratio49.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.78Price Target Upside45.14% Upside
Rating ConsensusHold
Number of Analyst Covering10
Bausch + Lomb Corporation Business Overview & Revenue Model
Company DescriptionBausch + Lomb Corporation (BLCO) is a leading global eye health company dedicated to protecting and enhancing the gift of sight for millions of people around the world. The company operates in three primary sectors: Vision Care, Ophthalmic Pharmaceuticals, and Surgical. Its core products include contact lenses, lens care products, ophthalmic pharmaceuticals, and surgical devices and instruments used in various eye surgeries.
How the Company Makes MoneyBausch + Lomb generates revenue through the sale of its diverse range of eye health products and services. In the Vision Care segment, the company earns money from the sale of contact lenses and lens care solutions. The Ophthalmic Pharmaceuticals division contributes to revenue through the sale of prescription and over-the-counter medications for eye conditions such as glaucoma, eye allergies, and dry eye. Additionally, the Surgical segment generates income by providing surgical equipment and devices used by ophthalmologists for procedures like cataract removal and refractive surgery. Key partnerships with healthcare providers, optometrists, and retailers expand the company's market reach, contributing to its earnings. Bausch + Lomb's global presence and focus on innovative eye care solutions further bolster its financial performance.
Bausch + Lomb Corporation Financial Statement Overview
Summary
Bausch + Lomb Corporation shows strength in revenue growth and maintaining a stable equity position. However, persistent net losses and increasing leverage raise concerns about long-term profitability and financial stability. While cash flow from operations has improved, negative free cash flow highlights liquidity management issues. The company needs to address profitability and leverage to enhance its financial health.Income Statement
The gross profit margin was robust in 2024 with a near 100% ratio, indicating strong cost management. However, the net profit margin is negative, driven by consistent net losses over the past two years. Despite revenue growing by 15.1% from 2023 to 2024, the company struggles with profitability as reflected by negative EBIT and EBITDA margins. Positive revenue growth is a strength, but the inability to translate this into net profits is a significant concern.65
Positive
Balance Sheet
The balance sheet shows a stable equity position with a strong equity ratio of 48.1% in 2024. However, the debt-to-equity ratio increased to 0.74, indicating growing leverage. Return on equity remains negative due to persistent net losses, highlighting profitability challenges. Overall, the company's asset base is strong, but increasing debt levels could pose risks if not managed carefully.70
Positive
Cash Flow
Free cash flow improved from 2023 to 2024 but remains negative, indicating cash flow challenges. The operating cash flow to net income ratio is positive due to improved operating cash flow, yet free cash flow to net income remains negative. While operating cash flow has turned positive, continued negative free cash flow suggests the need for better cash management strategies.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.77B | 4.15B | 3.77B | 3.77B | 3.41B |
| Gross Profit | ||||
| 2.90B | 2.50B | 2.25B | 2.30B | 2.13B |
| EBIT | ||||
| 162.00M | 130.00M | 207.00M | 329.00M | 260.00M |
| EBITDA | ||||
| 162.00M | 512.00M | 599.00M | 762.00M | 739.00M |
| Net Income Common Stockholders | ||||
| -317.00M | -260.00M | 15.00M | 182.00M | -17.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 305.00M | 331.00M | 354.00M | 174.00M | 238.00M |
| Total Assets | ||||
| 13.47B | 13.44B | 11.14B | 10.82B | 11.27B |
| Total Debt | ||||
| 4.78B | 4.56B | 2.44B | 112.00M | 101.00M |
| Net Debt | ||||
| 4.48B | 4.23B | 2.08B | -62.00M | -137.00M |
| Total Liabilities | ||||
| 6.92B | 6.52B | 4.04B | 1.42B | 1.28B |
| Stockholders Equity | ||||
| 6.47B | 6.85B | 7.03B | 9.33B | 9.92B |
| Cash Flow | Free Cash Flow | |||
| -59.00M | -198.00M | 170.00M | 664.00M | 263.00M |
| Operating Cash Flow | ||||
| 232.00M | -17.00M | 345.00M | 873.00M | 522.00M |
| Investing Cash Flow | ||||
| -412.00M | -2.11B | -215.00M | -214.00M | -256.00M |
| Financing Cash Flow | ||||
| 178.00M | 2.08B | 81.00M | -712.00M | -232.00M |
Bausch + Lomb Corporation Technical Analysis
Negative
12.25
Price Trends
15.09
Negative
16.73
Negative
17.22
Negative
Market Momentum
-1.09
Positive
36.84
Neutral
36.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Negative. The current price of 12.25 is below the 20-day moving average (MA) of 13.69, below the 50-day MA of 15.09, and below the 200-day MA of 17.22, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLCO.
Bausch + Lomb Corporation Risk Analysis
Bausch + Lomb Corporation disclosed 56 risk factors in its most recent earnings report. Bausch + Lomb Corporation reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bausch + Lomb Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $31.43B | 25.28 | 25.65% | 0.97% | 9.38% | 40.38% | |
73 Outperform | $15.75B | 38.09 | 5.25% | ― | 7.15% | 41.96% | |
55 Neutral | $4.03B | ― | -4.76% | ― | 15.56% | -21.60% | |
51 Neutral | $851.85M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
49 Neutral | $14.28B | 136.07 | -9.24% | 3.24% | -14.00% | -184.82% | |
48 Neutral | $6.46B | 1.17 | -48.25% | 2.67% | 19.50% | 0.61% | |
46 Neutral | $2.61B | ― | -34.77% | 4.89% | -4.34% | -634.89% |
* Healthcare Sector Average
Performance Comparison
BLCO
Bausch + Lomb Corporation
11.93
-2.14
-15.21%
BAX
Baxter International
27.80
-10.74
-27.87%
COO
Cooper Co
77.80
-12.73
-14.06%
XRAY
DENTSPLY SIRONA
12.55
-17.30
-57.96%
RMD
Resmed
213.97
30.77
16.80%
STAA
Staar Surgical
16.52
-30.10
-64.56%
Bausch + Lomb Corporation Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -25.08% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Bausch + Lomb's strong revenue growth across segments, successful product launches, and substantial innovation in their R&D pipeline. Despite challenges from currency headwinds and the Inflation Reduction Act, the company maintains a positive outlook with strategic investments in key products and technologies. The sentiment is largely positive with a focus on sustained growth and innovation.Highlights
Strong Revenue Growth
Achieved 17% constant currency revenue growth for the year with five straight quarters of double-digit growth. Contact lens revenue grew 13% for Q4 and 11% for the full year, with Daily SiHy lenses reporting over 70% growth.
Successful Product Launches
Miebo exceeded expectations with $172 million in revenue. Xiidra reached $364 million in full-year revenue. LUMIFY saw 24% revenue growth in Q4.
Innovation and R&D Overhaul
Overhauled R&D organization, developing new biomimetic contact lenses and myopia control solutions. Revamped pharma pipeline with upcoming novel treatments for eye health.
Strong Segment Performance
All three reporting segments delivered double-digit constant currency revenue growth. Vision Care revenue increased by 11%, Surgical by 15%, and Pharma by 7% for Q4.
Positive Financial Metrics
Adjusted gross margin for the full year was 62.6%, up 160 basis points. Adjusted EBITDA grew by 20% versus 2023. Adjusted cash flow from operations was $263 million for the full year compared to $56 million in 2023.
Lowlights
Currency Headwinds
Translational currency was a headwind of $69 million to revenue and $11 million to adjusted EBITDA for the full year.
Impact of Inflation Reduction Act
The Inflation Reduction Act is expected to have a $25 million impact in 2025, affecting adjusted gross margin.
Seasonality and Phasing Challenges
Q1 2025 expected to achieve roughly 17% of full-year adjusted EBITDA guidance due to continued investment in Miebo DTC campaign and R&D.
Company Guidance
During the Bausch + Lomb Fourth Quarter 2024 earnings call, the company provided robust financial guidance for 2025, highlighting a revenue range of $4.95 billion to $5.05 billion, which reflects constant currency growth of approximately 5.5% to 7.5%. The adjusted EBITDA is projected between $900 million and $950 million, excluding any potential one-time in-process research and development charges. The company anticipates an adjusted gross margin of approximately 62.5% and plans to invest around 7.5% of revenue in R&D. Despite potential headwinds from currency fluctuations, estimated to impact revenue by $100 million and adjusted EBITDA by $20 million, Bausch + Lomb remains optimistic about sustained growth across all segments. The guidance also accounts for a $25 million impact from the Inflation Reduction Act, with expectations for the highest revenue in the fourth quarter.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.