Quick Look:
- Staar Surgical’s Q1 revenue hit $77 million, surpassing the expected $72 million.
- Evo implantable lens sales in the U.S. reached $5 million, exceeding projections.
- The stock price soared by 16.5%, indicating strong investor confidence.
- Staar sets a sales forecast of $335 million to $340 million for the current year.
- Institutional ownership at 96.70%, reflecting robust market confidence.
Staar Surgical (STAA) is a luminary in the medical equipment industry. The company has posted its first-quarter sales figures, and the results are nothing short of exceptional. Its revenue has reached $77 million against an anticipated $72 million. Therefore, Staar has surpassed analysts’ forecasts and laid a marker in the competitive landscape of refractive error correction solutions.
The company, renowned for its cutting-edge implantable lenses, including the Evo implantable collamer lens, has once again demonstrated its prowess in improving vision worldwide. Despite the stiff competition from laser-based procedures like Lasik, Staar’s products have continued to capture the imagination and trust of patients and professionals alike. The Evo lens, with sales in the U.S. reaching $5 million—outstripping expectations by a healthy margin—is a testament to the company’s innovation and strategic market positioning.
Staar’s Stock Climbs to $45.51, Up 16.5%
Staar Surgical’s stock has been on an upward trajectory, currently priced at $45.51, which represents a significant 16.5% increase. This bullish trend is underscored by the stock’s performance relative to its 200-day moving average, signalling robust investor confidence in the company’s strategic direction and growth prospects. Staar is positioned as a formidable player in the medical equipment industry, with a market capitalization of $2.22 billion and a P.E. ratio of 105.84.
The company’s stock has demonstrated resilience and growth, buoyed by a Beta of 0.86, indicating less volatility compared to the broader market. Additionally, the relative strength rating 41 further solidifies Staar’s standing in the market, reflecting its potential for continued upward momentum.
Target $500M-$550M by 2026 Amid Market Rivalry
Looking ahead, Staar Surgical has set ambitious sales forecasts for the current year, with guidance ranging from $335 million to $340 million, albeit against analysts’ more aggressive expectation of $355 million. The company’s target for the year 2026 is equally ambitious, aiming for $500 million to $550 million, a goal that some analysts view as aggressive given the competitive pressures and market dynamics.
The refractive error correction segment, where Staar Surgical and laser-based procedures like Lasik vie for dominance, remains highly competitive. Despite laser procedures accounting for 96% to 97% of the market, Staar’s Evo usage, representing 3% to 4%, underscores the significant inroads and impact the company has made in this sector.
Staar Boasts 7.0% ROCE; Insiders Show Confidence
Staar Surgical’s financial health is underscored by a Return on Capital Employed (ROCE) of 7.0%, with capital growth over the last five years soaring to 203%. While the industry average ROCE is 9.6%, Staar’s performance and strategic investments have set the stage for long-term growth and profitability.
The company’s insider activity further reflects confidence in its growth trajectory, with significant purchases made by stakeholders such as Broadwood Partners, L.P., and Aimee S. Weisner, Director, highlighting a strong belief in the company’s prospects.
Institutions Own 96.7% of Staar: Positive Sentiment
Institutional investment in Staar Surgical remains robust, with an ownership percentage of 96.70%, showcasing strong market confidence. The recent new positions by entities such as Clear Street Markets LLC and Cape Investment Advisory Inc. and significant position changes by Evermay Wealth Management LLC and UBS Group AG signal a positive sentiment and a bullish outlook for Staar’s future.