What Happened?

Shares of eyecare company Bausch + Lomb (NYSE:BLCO) fell 21.2% in the morning session after 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.

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What The Market Is Telling Us

Bausch + Lomb’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Bausch + Lomb and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 10.6% on the news that the company announced the voluntary recall of intraocular lenses on its enVista platform. The recall was due to the reports of toxic anterior segment syndrome (TASS, a potential complication in any cataract surgery). The recall may raise short-term concerns regarding product safety and regulatory scrutiny. Though the company emphasized that the reported cases of TASS involved only an extremely small fraction of implanted lenses.

Bausch + Lomb is down 34.4% since the beginning of the year, and at $11.81 per share, it is trading 43.6% 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 $590.00.

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