Alcon Inc

ALC: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$75.00	Jwltt	Qrdhsrb

Alcon Earnings: Strong Demand and Product Mix Raise Top and Bottom Line; Shares Still Expensive

Keonhee Kim

Aug 16, 2023

Narrow-moat Alcon reported second-quarter earnings that were ahead of our expectations. Total sales were up 9.2% year over year as strong performance from both surgical and visioncare units boosted the top line. Management raised guidance for full-year sales and diluted EPS on the backdrop of diminishing inflation and supply chain challenges, as well as healthy and resilient demand. After updating our near-term assumptions and adjusting for the time value of money, we raised our fair value estimate to $64 from $60.

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