Alcon cuts 2024 forecasts, as slow US hits surgical unit

(Reuters) – Eye-care group Alcon cut its 2024 forecasts and missed market expectations for third-quarter sales on Tuesday evening, as a soft U.S. market hit its surgical business.

Alcon, whose biggest market is the U.S. making up nearly a half of its revenue, said it expected annual net sales to grow by 6-7% in constant currency terms, compared to the previous forecast of 7-9%.

It sees 2024 core diluted earnings per share of between $3.00 and $3.05, bringing the top of the range down from $3.10.

The Swiss-American group posted a 6% rise in its third-quarter sales to $2.43 billion, but missed analysts' average forecast by 1.4%, according to LSEG data.

Slower market conditions in the U.S. impacted the surgical division, which posted a slower than expected 5% rise in sales, versus a consensus of 7.6% cited by J.P.Morgan in a research note.

Alcon also saw headwinds in its vision care division due to declines in contact lens care in its international markets. The unit posted 7% sales growth, below a consensus of 8.5%.

The company's New York-listed shares closed 5.8% lower on Tuesday.

Ryan Zimmerman, an analyst at BTIG, said that while Alcon had been pointing to softer U.S. market dynamics for a while, their extent was proving more significant than anticipated.

"That said, we continue to look to full-year 2025 for a number of new products that are likely to boost growth," Zimmerman added.

Alcon, spun off from Novartis in 2019, is betting on new product launches to accelerate sales growth in 2025 and beyond.

(Reporting by Amir Orusov in Gdansk; editing by Milla Nissi)