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STAAR Surgical (STAA) to Report Q4 Earnings: What's in Store?

STAAR Surgical Company STAA is expected to report fourth-quarter 2022 results on Feb 22, after the closing bell.

In the last reported quarter, the company’s earnings per share (EPS) of 37 cents surpassed the Zacks Consensus Estimate by 76.2%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all four occasions, the average beat being 61.05%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

Over the past few quarters, STAAR Surgical is registering growth in EVO Implantable CollamerLenses (EVO) in the APAC region and strong accelerating growth in the United States despite constant currency challenges and in Europe macroeconomic headwinds. This trend is expected to have continued through the fourth quarter on the back of continued strong customer adoption, driving top-line.

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During the November update, the company noted that it had advanced its patient awareness, engagement and market-building initiatives for EVO in the United States during and subsequent to the third quarter, highlighted by media campaigns with global entertainment celebrities. In this regard, the company has partnered with professional basketball player Max Strus to further its mission of bringing EVO to the millions of Americans who suffer from myopia or nearsightedness. We expect this development to have expanded adoption of EVO lenses, thus adding to revenue growth in Q4.

Moreover, the launch of the EVO ICL educational series on YouTube has now expanded to 8 videos as the company added individual videos about Joe and Max’s decision to choose EVO. The EVO ICL channel on YouTube is now approaching 6 million video views. This is also expected to boost the company’s top line during the fourth quarter.

STAAR Surgical Company Price and EPS Surprise

 

STAAR Surgical Company Price and EPS Surprise
STAAR Surgical Company Price and EPS Surprise

STAAR Surgical Company price-eps-surprise | STAAR Surgical Company Quote

 

Meanwhile, in the third quarter, STAAR Surgical achieved strong ICL unit growth in China, Japan, South Korea and the United States, led by a strong recovery in visits by patients seeking visual freedom. We believe this to have continued through the fourth quarter as well on the back of the company’s progress in advancing the adoption of EVO lenses through patient awareness and surgeon engagement.

During third-quarter earnings call, management noted that the tighter COVID restrictions in China, resulting in expected delayed demand, ongoing headwinds in Europe, weakness in the yen and euro and lower other product sales are expected to hurt overall growth in the fourth quarter.

The Estimate Picture

For fourth-quarter 2022, the Zacks Consensus Estimate for total revenues of $64.4 million implies a rise of 9.1% from the prior-year reported figure. Also, the consensus estimate for EPS is pegged at 15 cents, implying a decline of 21.1% from the prior-year reported figure.

What Our Model Suggests

Per our proven model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. However, this is not the case here, as you can see:

Earnings ESP: STAAR Surgical has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.

Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +1.32% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zimmer Biomet has a long-term expected earnings growth rate of 7.7%. ZBH’s earnings yield of 5.45% compares favorably with the industry’s 0.00%.

Haemonetics Corporation HAE has an Earnings ESP of +2.53% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter fiscal 2023 results on Feb 7.

HAE’s next year earnings growth rate is estimated at 5.4%. HAE’s earnings yield of 3.4% compares favorably with the industry’s 0.00%.

Laboratory Corporation of America Holdings or LabCorp LH currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is expected to release fourth-quarter 2022 results on Feb 16.

LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report

Haemonetics Corporation (HAE) : Free Stock Analysis Report

STAAR Surgical Company (STAA) : Free Stock Analysis Report

Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report

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