NASDAQ$STAA

STAAR Surgical Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

STAAR Surgical's financial results for Q1 2020 were reported, showing an increase in net sales and ICL sales, but a decrease in gross margin and net income compared to the prior year quarter.

STAAR Surgical reported net sales of $35.2 million, an 8% increase compared to the prior year quarter. ICL sales increased by 6% and units by 9%. Gross margin decreased to 70.4% from 74.2% in the prior year, and the company experienced a net loss of approximately breakeven per share, compared to a net income of $0.03 per share in the prior year quarter. Cash and cash equivalents ended the quarter at $110.9 million.

  • Net sales increased by 8% to $35.2 million compared to the prior year quarter.
  • ICL sales grew by 6% with a 9% increase in units compared to the prior year quarter.
  • Gross margin decreased to 70.4% compared to 74.2% in the prior year quarter.
  • Net loss was approximately breakeven per share, compared to a net income of $0.03 per share in the prior year quarter.

Headline financials

Total Revenue

$35.2M

Previous: $32.6M+8.0%
EPS (adj)

$0.04

Previous: $0.03+33.3%
Capital Expenditures

-$2.19M

Previous: -$2.2M+0.8%
Free Cash Flow

-$2.32M

Previous: -$836K-177.4%
Net Income

-$134K

Previous: $1.37M-109.8%
Operating Income

-$1.14M

Previous: $1.57M-172.5%
Gross Profit

$24.8M

Previous: $24.2M+2.4%
Cash & Equivalents

$111M

Previous: $102M+8.6%
Total Assets

$207M

Previous: $177M+16.7%

Revenue & EPS history

STAAR Surgical · Revenue · Quarterly

$35.2M

Q1 2020+8%vs Q1 2019
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

STAAR Surgical anticipates that Q2 will be negatively impacted by markets reopening in late May and June. However, the company expects to resume double-digit growth in Q3 and Q4, assuming no further forced closures or challenging COVID-19 scenarios.

Tailwinds

  • Large Asian markets are growing well now.
  • Company expects to resume double-digit growth outlook originally targeted in Q3 and Q4.
  • Strong desire to resume refractive surgery quickly once elective procedures are allowed.
  • Highest ICL sales and unit growth experienced in the last five years for January.
  • Major markets which remained open continued trend into the middle of March.

Headwinds

  • Significant winding down or pause of implants in COVID-19 hotspots.
  • Q2 will be negatively impacted by the markets that are just returning to re-open their clinics and practices in late May into June.
  • COVID-19 impact on revenue of approximately $4.0 million.
  • Decrease in gross margin for the quarter is primarily due to the increased mix of injector part sales which carry a lower margin and period costs associated with manufacturing expansion projects.
  • Net loss for the first quarter of 2020 was ($0.1) million or approximately ($0.00) per diluted share compared with net income of $1.4 million or $0.03 per diluted share for the prior year quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.4%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.5%

Avg return

30 days after

50%

30 / 60 earnings

Positive

+29.0%

Q1 2018

Best reaction

-24.7%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%+14.5%+0.6%
Q4 2025-1.4%-3.2%+6.8%
Q3 2025-0.3%-4.9%-0.2%
Q1 2025+0.2%-2.3%-8.1%
Q4 2024-24.7%-29.8%-22.1%
Q3 2024-4.3%-3.8%-3.9%
Q2 2024+6.5%+1.7%-17.9%
Q1 2024-10.8%-7.9%-12.0%
Q4 2023+6.6%+8.6%+22.9%
Q3 2023-13.9%-17.5%-21.1%
Q2 2023-10.5%-11.6%-18.4%
Q1 2023-5.8%-1.5%-15.9%
Q4 2022-12.7%-18.4%-9.6%
Q3 2022-18.9%-20.0%-14.1%
Q2 2022+23.1%+26.6%+16.8%
Q1 2022+1.9%-9.3%+7.6%
Q4 2021+13.1%+20.4%+10.7%
Q3 2021-1.5%-1.3%-24.8%
Q2 2021+21.3%+19.4%+22.4%
Q1 2021+8.6%-8.6%+12.6%
Q4 2020-4.3%-4.1%-9.7%
Q3 2020+2.4%+14.8%+7.0%
Q2 2020-6.8%-14.2%-16.7%
Q1 2020-0.5%+3.8%+14.8%
Q4 2019+2.0%+4.1%+1.9%
Q3 2019+14.6%+22.1%+28.8%
Q2 2019+14.9%+5.9%-0.6%
Q1 2019-13.3%-16.8%-28.7%
Q4 2018-0.6%-1.2%+2.7%
Q3 2018+10.6%+13.9%-1.2%
Q2 2018+25.6%+29.3%+54.6%
Q1 2018+29.0%+38.1%+84.8%
Q4 2017-9.1%-8.2%-7.2%
Q3 2017+12.0%+10.5%+17.0%
Q2 2017-1.4%-3.3%+11.6%
Q1 2017-2.9%-3.3%-10.0%
Q4 2016+1.5%-2.4%-4.4%
Q3 2016+9.8%+11.6%+28.0%
Q2 2016+19.9%+21.5%+30.4%
Q1 2016-22.4%
Q4 2015+17.1%
Q3 2015+13.0%
Q2 2015+1.2%
Q1 2015-6.0%
Q4 2013+10.1%
Q3 2013-3.6%
Q2 2013+18.6%
Q1 2013+20.8%
Q4 2012-5.6%
Q3 2012+7.5%
Q2 2012+26.3%
Q1 2011-10.1%
Q1 2012-0.7%
Q4 2011-0.8%
Q1 2009-0.8%
Q3 2010+7.7%
Q3 2011+7.7%
Q4 2010-6.7%
Q2 2010-6.7%
Q2 2011-6.7%

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