Alcon, a leading company in eye care products, reported significant second-quarter sales of $2.5 billion, setting a new record that has positively influenced their interim financial results for 2024. This robust performance has prompted Alcon's management to reaffirm its full-year sales guidance. David Endicott, the Chief Executive Officer of Alcon, expressed his satisfaction regarding the company's strong second-quarter outcomes.
He stated, "We are pleased with our solid second-quarter results, which were driven by robust demand for our innovative products, our balanced geographic footprint and strong execution by our team. These factors contributed to another quarter of sales and earnings growth and robust cash generation." The Swiss-based group has maintained its net sales outlook for the full year within a range of $9.9 billion to $10.1 billion.
This figure reflects a constant currency growth estimation of 7% to 9% year-on-year. Furthermore, Alcon confirmed its core diluted EPS forecast to be in the range of $3 to $3.10, indicating a significant increase of 15% to 18% compared to the previous year. Despite the positive outlook, analysts have noted that the second-quarter revenue did not meet consensus expectations, highlighting underperformance particularly in the equipment and ocular health segments.
Analysts from RBC Capital Markets remarked, "We see the reiteration of FY2024 guidance as positive, although we flag that the slight revenue and EBIT margin misses, as well as weaker than expected performance in Equipment and Ocular Health, incrementally increase the risk to delivering on FY2024 consensus expectations.
We therefore see these results as neutral." For the six-month period ending June 30, Alcon's net income demonstrated a substantial increase, jumping to $471 million from $343 million in the same period a year prior, largely attributed to net sales and other revenue totaling $4.96 billion, up from $4.77 billion previously.
The majority of the sales growth was driven by Alcon's consumer segments, particularly in consumables and contact lenses. International demand for cataract and vitreoretinal consumables led to net sales of consumables reaching $1.42 billion, a rise from $1.37 billion. Product innovation significantly bolstered contact lens sales, which grew to $1.31 billion from $1.21 billion.
Analysts at Needham have observed that Alcon improved its share of the contact lens market by 90 basis points on an annual basis, now holding 25.8% of the market. As Alcon looks forward to the second half of the year, Endicott commented, "Our focus will be on preparing for product launches that will position us well for our next phase of growth in 2025 and beyond." Additionally, Needham analysts project that Alcon can maintain mid-single-digit revenue growth or potentially exceed this, thanks to recent and forthcoming product launches in high-growth categories.
They further anticipate ongoing margin improvements that may drive double-digit EPS growth in the coming period. On the trading front, Alcon's shares closed slightly lower during Tuesday's market activities..