Staar Surgical Co (STAA) Posts Solid Growth in Q4 and FY 2023, Affirms Positive Outlook for 2024
Net Sales: Increased by 19% to $76.3 million in Q4 and by 13% to $322.4 million for FY 2023.
ICL Sales: Grew by 22% to $74.6 million in Q4 and by 18% to $319.4 million for FY 2023.
Gross Margin: Improved to 79.6% in Q4 from 77.7% a year ago; remained strong at 78.4% for FY 2023.
Net Income: Increased to $7.8 million in Q4; however, decreased to $21.3 million for FY 2023 from $39.7 million in FY 2022.
Earnings Per Share (EPS): Rose to $0.16 in Q4; for FY 2023, EPS was $0.43, down from $0.80 in FY 2022.
Liquidity Position: Ended the year with $232.4 million in cash, cash equivalents, and investments.
FY 2024 Outlook: Expects net sales of $335 million to $340 million and adjusted EBITDA of approximately $36 million.
On February 26, 2024, Staar Surgical Co (NASDAQ:STAA), a pioneer in implantable lenses for eye surgeries, released its 8-K filing, showcasing a robust financial performance for the fourth quarter and fiscal year 2023. The company, known for its EVO family of Implantable Collamer Lenses (EVO ICL), reported a significant increase in sales, particularly for its ICL products, which are used in refractive surgery to correct vision.
Financial Highlights and Performance
Staar Surgical's net sales saw a 19% increase in the fourth quarter, reaching $76.3 million, with ICL sales climbing by 22% to $74.6 million. The company's gross margin improved to 79.6% in the fourth quarter, up from 77.7% in the same period last year. For the full fiscal year, net sales grew by 13% to $322.4 million, with ICL sales up by 18%. Despite these gains, net income for the fiscal year fell to $21.3 million from $39.7 million in the previous year, with earnings per share decreasing to $0.43 from $0.80.
President and CEO Tom Frinzi highlighted the company's strong sales growth and profitability, driven by robust performance in the APAC region and sequential growth in EMEA. He noted that the company's ICL unit growth continues to outpace the refractive industry growth significantly.
We are pleased with the increasing interest our lens-based technology is garnering and look forward to sharing more about our progress, partnerships, and innovation investments in the coming weeks and at the ASCRS meeting in Boston," said Frinzi.
Challenges and Outlook
While Staar Surgical's financial achievements underscore its market position in the Medical Devices & Instruments industry, the decrease in net income for the fiscal year indicates challenges in managing expenses, which increased by 25% due to higher compensation-related expenses, marketing, promotional and advertising activities, and outside services and facilities costs. The company's outlook for fiscal 2024 remains positive, with an expected net sales range of $335 million to $340 million and an adjusted EBITDA of approximately $36 million.
Staar Surgical's commitment to strategic investments in growth opportunities, coupled with its strong liquidity positionending the year with $232.4 million in cash, cash equivalents, and investmentspositions it well for future expansion and innovation in the ophthalmic surgery market.
For detailed financial tables and a reconciliation of non-GAAP financial measures, please refer to the original 8-K filing.
Investor and Analyst Confidence
The company's solid financial performance and strategic focus on enhancing the surgeon experience and driving practice efficiency are likely to instill confidence in investors and analysts. Staar Surgical's ability to maintain healthy margins and a debt-free balance sheet further solidifies its financial stability and potential for sustained growth.
Investors and analysts are invited to participate in the conference call and webcast to discuss the financial results and operational progress. The details of the conference call are available in the earnings release.
For more information on Staar Surgical Co (NASDAQ:STAA) and its financial performance, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Staar Surgical Co for further details.
This article first appeared on GuruFocus.
