What Happened?
Shares of eyecare company Bausch + Lomb (NYSE: BLCO) fell 3.1% in the morning session after the company reported mixed second-quarter 2025 financial results where a decline in profitability overshadowed revenue growth and a raised forecast. While the company's revenue increased by 5% year-over-year to $1.28 billion, beating analyst expectations, its underlying earnings disappointed investors. The growth was primarily driven by its Vision Care segment, and the company also raised its full-year revenue guidance. However, Bausch + Lomb posted a GAAP net loss of $62 million for the quarter. Furthermore, its adjusted net income fell to $25 million from $45 million in the same period a year earlier. This drop in profitability, attributed to higher operational costs and the recall of its enVista Intraocular Lenses, appeared to weigh more heavily on investor sentiment than the positive top-line performance.
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What Is The Market Telling Us
Bausch + Lomb’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 21.2% on the news that the company reported weak first quarter 2025 results: constant currency revenue fell short of Wall Street's estimates, leading to an EPS miss. On the other hand, it was good to see Bausch + Lomb provide full-year revenue guidance that slightly beat analysts' expectations, although raising full-year revenue guidance after missing on revenue often raises questions. Overall, this quarter could have been better.
Bausch + Lomb is down 20.6% since the beginning of the year, and at $14.30 per share, it is trading 31.7% below its 52-week high of $20.93 from October 2024. Investors who bought $1,000 worth of Bausch + Lomb’s shares at the IPO in May 2022 would now be looking at an investment worth $715.00.
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