NASDAQ$STAA

STAAR Surgical Company · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

STAAR Surgical reported a significant decline in fourth quarter revenue and a net loss, primarily due to weak macroeconomic conditions and reduced consumer confidence in China.

STAAR Surgical experienced a challenging fourth quarter in 2024, with net sales significantly decreasing to $49.0 million from $76.3 million in the prior year quarter. This decline was largely driven by a substantial drop in China revenue. The company reported a net loss of $(34.2) million, or $(0.69) per diluted share, a significant shift from a net income of $7.8 million in the same period last year. Despite strong performance outside of China, the overall results were heavily impacted by the weak Chinese market.

  • Net sales for Q4 2024 were $49.0 million, a significant decrease from $76.3 million in Q4 2023.
  • The company reported a net loss of $(34.2) million, or $(0.69) per diluted share, compared to a net income of $7.8 million, or $0.16 per diluted share, in the prior year quarter.
  • ICL sales, excluding China, increased by 17% from the prior year quarter, demonstrating strong performance in other regions.
  • Gross profit margin decreased to 64.7% from 79.6% in the prior year quarter, partly due to unrecognized revenue from shipments to China and manufacturing facility costs.

Headline financials

Total Revenue

$49M

Previous: $76.3M-35.8%
EPS (adj)

-$0.69

Previous: $0.16-531.3%
Gross Margin

64.7%

Previous: 79.6%-18.7%
Net Income

-$34.2M

Previous: $7.8M-538.8%
Operating Income

-$27.9M

Previous: $10.4M-368.4%
Gross Profit

$31.6M

Previous: $60.7M-47.9%

Revenue & EPS history

STAAR Surgical · Revenue · Quarterly

$49M

Q4 2024-35.8%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

STAAR Surgical expects continued double-digit growth in global markets outside of China for fiscal year 2025, driven by sustained demand for ICL technology. However, the company anticipates lower overall demand in China, particularly in the first half of 2025, due to elevated inventory levels and weak in-market refractive procedure demand. The company plans to manage working capital and implement cost-cutting measures, including reduced production output, decreased capital expenditures, and targeted reductions to operating expenses.

Tailwinds

  • Expected double-digit growth across global markets outside of China in 2025.
  • ICL sales Ex. China are projected to grow approximately 9% to 15% in fiscal 2025, reaching $165 million to $175 million.
  • The company expects a rebound in overall refractive procedure volumes in China in the second half of 2025, with ICL sales potentially reaching $75 million to $125 million.
  • The company aims to end fiscal 2025 with cash, cash equivalents, and investments available for sale of approximately $150 million to $175 million.
  • The company is positioning itself for a rebound once the China market recovers.

Headwinds

  • Overall lower demand in China is expected in fiscal 2025, particularly in the first half.
  • China ICL sales are projected to be less than $5 million for the first half of 2025 due to elevated inventory levels and weak demand.
  • Adjusted EBITDA loss is anticipated to be approximately $(30) million per quarter in the first half of 2025.
  • Full-year fiscal 2025 Adjusted EBITDA loss range is projected to be approximately $(50) million to $(15) million.
  • The company no longer expects to achieve its Vision 2026 Target Sales and Operating Model.

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 Q4 2024

Historical avgQ4 2024

+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%
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%
Q1 2009-0.8%
Q4 2011-0.8%
Q3 2010+7.7%
Q3 2011+7.7%
Q2 2010-6.7%
Q4 2010-6.7%
Q2 2011-6.7%

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