Alcon shares in Switzerland dropped after the eyecare company reported third-quarter revenue growth that fell short of analysts' expectations and narrowed its full-year earnings outlook to the lower end of previous guidance.
Zurich-listed shares in Alcon were down 7.7% in European morning trading, taking the stock's year-to-date loss to 9.7%.
The company reported third-quarter net sales of $2.72 billion, up 5% compared with the year-earlier period when excluding currency changes.
Analysts polled by Visible Alpha had forecast Alcon's sales at $2.73 billion and constant-currency growth at 5.8%.
Alcon reported a 4% revenue increase in its surgical segment, with growing consumables and equipment sales offsetting a decline in implantables, and a 6% rise in its vision-care segment driven by both ocular-health products and contact lenses.
Net profit rose to $260 million from $237 million.
The company tightened its full-year guidance for both sales growth and core earnings. It now expects sales to grow 6% at constant currency, at the midpoint of its prior 5% to 7% range.
Core earnings per share are forecast to grow by 12% to 14%, which compares with Alcon's previous expectations of between 12% and 15%.
The weaker-than-expected sales and narrowed guidance won't be taken well by investors, as they reduce the prospect of positive surprises, analysts at RBC Capital Markets wrote in a note to clients.
Analysts at Swiss bank Vontobel said in a note that implantables sales missed expectations due to competitive pressures in the U.S., which would disappoint the market.
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