Nov 12 (Reuters) - Swiss-American eye care group Alcon ALCC.S reported third-quarter results broadly in line with market expectations and reiterated its annual outlook late on Tuesday, alleviating some investor concerns amid acquisition difficulties and higher U.S. tariffs.
WHY IT'S IMPORTANT
Alcon is a global leader in the eye care market with significant exposure to the United States, which accounted for roughly 45% of its quarterly sales.
The earnings report comes amid complications in Alcon's planned acquisition of U.S.-based contact lens manufacturer Staar Surgical STAA.O. The deal, agreed in early August, has faced strong resistance from Staar shareholders.
On Friday, Staar amended its merger agreement with Alcon to introduce a new 30-day go-shop period, allowing it to evaluate alternative takeover proposals.
CONTEXT
Alcon is preparing for a $100 million increase in gross costs due to U.S. tariffs. The company said it can offset this impact via currency exchange gains and operational adjustments, but recent pressure on margins indicates the challenge is significant.
The company had cut its net sales outlook in August due to tariff pressures. This time, it maintained the guidance.
BY THE NUMBERS
Alcon reported a 7% rise in its quarterly revenue to $2.6 billion, helped by demand for its new products. That matched analysts' average forecast, data compiled by LSEG showed.
Growth was driven by recent equipment launches, particularly cataract surgery platform Unity VCS, which drove revenue in the surgical business unit 6% higher, the company said.
MARKET REACTION
Shares of Alcon jumped 7% by 0808 GMT, with analysts from J.P. Morgan saying there was "a little relief" among investors after the outlook was confirmed.
(Reporting by Simon Ferdinand Eibach and Maria Rugamer in Gdansk, editing by Milla Nissi-Prussak)
((Simonferdinand.eibach@thomsonreuters.com))