Bausch + Lomb’s second quarter revealed a mixed response from the market, as revenue growth outpaced analyst expectations but non-GAAP profitability fell short. Management attributed top-line momentum to robust demand for the company’s consumer and dry eye portfolios, as well as the ongoing recovery of its enVista intraocular lens business following a recall. CEO Brent Saunders acknowledged operational challenges, particularly in the U.S. generics segment, but emphasized that improved execution in contact lenses and strong launches in over-the-counter dry eye products helped stabilize performance.
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Bausch + Lomb (BLCO) Q2 CY2025 Highlights:
- Revenue: $1.28 billion vs analyst estimates of $1.25 billion (5.1% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.07 vs analyst expectations of $0.08 (16.9% miss)
- Adjusted EBITDA: $192 million vs analyst estimates of $186.1 million (15% margin, 3.2% beat)
- The company slightly lifted its revenue guidance for the full year to $5.1 billion at the midpoint from $5.05 billion
- EBITDA guidance for the full year is $885 million at the midpoint, above analyst estimates of $854.6 million
- Operating Margin: -0.9%, down from 2.1% in the same quarter last year
- Constant Currency Revenue rose 3.4% year on year (20.1% in the same quarter last year)
- Market Capitalization: $4.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bausch + Lomb’s Q2 Earnings Call
- Matthew Miksic (Barclays) asked CEO Brent Saunders about his decision to extend his contract amid uncertainty. Saunders cited confidence in the team and product pipeline, saying, “the opportunity in front of this team right now is really too important and too exciting not to be a part of it.”
- Xuyang Li (Jefferies) inquired about MIEBO investment strategy given new competition. Saunders explained that market expansion and the company’s broad dry eye portfolio allow for both competitive resilience and continued profitability improvement, with CMO Yehia Hashad emphasizing MIEBO’s unique clinical benefits.
- Lei (Wells Fargo) sought clarity on potential for margin and revenue growth in 2026. CFO Sam Eldessouky stated that seasonal strength and recovery in generics and surgical segments should set the stage for improvement, with more detailed guidance coming at the Investor Day in November.
- Joanne Wuensch (Citibank) questioned the outlook for contact lens innovation. Saunders and Hashad described significant R&D advances, including upcoming clinical trials for biomimetic lenses and a strategy aimed at market leadership rather than catch-up.
- Gary Nachman (Raymond James) asked about the pace of enVista recovery and dry eye market growth. Saunders detailed the phased resupply and surgeon adoption, while highlighting that MIEBO’s growth is largely from new patients entering the market rather than switching from competitors.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be monitoring (1) the ramp-up of enVista intraocular lens production and its effect on surgical segment recovery, (2) the stabilization and potential rebound of the U.S. generics business under new leadership, and (3) continued momentum in dry eye and contact lens portfolios, particularly in the context of new competitive entrants and regulatory developments. Execution on pipeline milestones and new product launches will also be key indicators of progress.
Bausch + Lomb currently trades at $13.77, down from $14.67 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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