Bausch + Lomb’s first quarter results disappointed investors as both revenue and adjusted earnings fell short of Wall Street’s expectations, leading to a sharp market reaction. Management attributed the underperformance primarily to supply disruptions from a voluntary recall of its enVista intraocular lenses and weaker results in the high-margin U.S. Generics pharmaceutical business. CEO Brent Saunders noted that, despite these setbacks, “our core business is performing well,” highlighting continued strength in the company’s Vision Care and Surgical divisions. Ongoing headwinds in Pharmaceuticals, especially in generics, and the financial impact of the recall weighed on overall margins and profitability.
Is now the time to buy BLCO? Find out in our full research report (it’s free).
Bausch + Lomb (BLCO) Q1 CY2025 Highlights:
- Revenue: $1.14 billion vs analyst estimates of $1.15 billion (3.5% year-on-year growth, 0.7% miss)
- Adjusted EPS: -$0.07 vs analyst estimates of $0.02 (significant miss)
- Adjusted EBITDA: $126 million vs analyst estimates of $163.4 million (11.1% margin, 22.9% miss)
- The company lifted its revenue guidance for the full year to $5.05 billion at the midpoint from $4.98 billion, a 1.5% increase
- EBITDA guidance for the full year is $875 million at the midpoint, below analyst estimates of $921.9 million
- Operating Margin: -7.3%, down from 0.5% in the same quarter last year
- Constant Currency Revenue rose 5.2% year on year (20.2% in the same quarter last year)
- Market Capitalization: $4.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Bausch + Lomb’s Q1 Earnings Call
-
Patrick Wood (Morgan Stanley) asked about the impact and customer response to the enVista recall. CEO Brent Saunders reported that most customers appreciated the company’s transparency and commitment to safety, with many planning to resume use as soon as supply is restored.
-
Young Li (Jefferies) inquired about consumer demand trends, particularly in the U.S. and China. Saunders explained that consumption remained strong, with little sign of discretionary pullback, but noted ongoing retailer inventory destocking as a near-term factor.
-
Joanne Wuensch (Citi) requested updates on the contact lens pipeline and market dynamics. Saunders and Head of R&D Yehia Hashad highlighted the progression of biomimetic lens and myopia control programs, emphasizing that new products are designed to leverage existing manufacturing infrastructure.
-
Unidentified Analyst (Wells Fargo) sought clarity on the timing and magnitude of tariff impacts. CFO Sam Eldessouky projected that immediate actions would shield margins in the first half, with more balanced exposure in the second half, depending on additional mitigation steps.
-
Robbie Marcus (JPMorgan) questioned the exclusion of tariffs from official guidance and potential covenant risks. Saunders and Eldessouky underscored the fluidity of tariff policy and expressed confidence in the company’s ability to remain in compliance through ongoing mitigation.
Catalysts in Upcoming Quarters
In the upcoming quarters, our analysts will be watching (1) the pace of enVista IOL restocking and adoption in the U.S. and international markets, (2) the effectiveness of management’s tariff mitigation efforts and any developments in trade policy, and (3) continued sales momentum in flagship brands like MIEBO, XIIDRA, and Daily SiHy contact lenses. Progress in advancing clinical pipeline assets and the launch timing for new IOL and contact lens products will also be important indicators.
Bausch + Lomb currently trades at $12.48, down from $13.72 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
