Why did BLCO's Q4 2024 earnings surprise analysts?

Bausch + Lomb's (BLCO) Q4 2024 earnings surprised analysts due to several key factors:

1. **Revenue Growth**: The company's revenue grew by approximately 17% year-over-year, reaching $1.28 billion for the quarter. This growth was driven by strong performance across all segments, including a 11% increase in the Vision Care segment and a 15% rise in the Surgical segment.
2. **Dry Eye Portfolio Performance**: The dry eye portfolio contributed significantly to the revenue growth, with the success of Miebo and Xiidra products leading to a near-billion annual revenue target. The company's focus on the dry eye category and the launch of innovative products in this space have been key drivers of growth.
3. **Contact Lens Business Growth**: The contact lens business experienced double-digit revenue growth, particularly in the Daily SiHy lenses. This growth was fueled by continuous product introductions and optimizations in manufacturing processes, including the use of AI.
4. **Pharmaceuticals Segment Expansion**: The Pharmaceuticals segment saw a 67% revenue increase, primarily due to the growth of the premium intraocular lenses (IOLs) within the surgical segment. The company's expansion in this segment, including the launch of new products like enVista® Envy™, has been a significant contributor to its overall growth.

In summary, Bausch + Lomb's Q4 2024 earnings exceeded expectations due to robust revenue growth across various segments, particularly in the Vision Care and Surgical segments, and the successful performance of the dry eye portfolio and contact lens business.