icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Staar Surgical 2025 Q1 Earnings Misses Targets as Net Loss Widens 1523.6%

Daily EarningsThursday, May 8, 2025 3:28 am ET
54min read
STAA Trend
Staar Surgical (STAA) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company fell short of expectations, as its earnings per share (EPS) of negative $1.10 missed the analysts' consensus estimate of negative $0.67. This marks a significant decline compared to the same quarter last year. The company has withdrawn its financial guidance due to ongoing economic uncertainties and tariff issues. Despite these challenges, staar surgical remains optimistic about growth prospects, particularly in China, as it implements strategic measures to mitigate these headwinds and realign its operations.

Revenue
Staar Surgical's revenue for Q1 2025 fell by 44.9% year-on-year, reaching $42.59 million, compared to $77.36 million in the same quarter of 2024. Core Products generated $41.50 million, with the ICLs segment also contributing $41.50 million. Other surgical products added $1.09 million, culminating in total net sales of $42.59 million. The sharp decline in total net sales is primarily attributed to reduced purchases by China distributors.

Earnings/Net Income
Staar Surgical's losses widened significantly to $1.10 per share in Q1 2025, compared to a loss of $0.07 per share in Q1 2024, reflecting a 1471.4% increase in losses. The company's net loss deepened to $54.21 million, marking a 1523.6% increase from the $3.34 million loss in the same period last year. The EPS figures indicate a challenging financial performance for this quarter.

Price Action
The stock price of Staar Surgical climbed 3.79% during the latest trading day, gained 6.46% over the most recent full trading week, and surged 22.11% month-to-date.

Post-Earnings Price Action Review
Following Staar Surgical's earnings report, a strategy of buying shares after a revenue increase quarter-over-quarter and holding for 30 days resulted in moderate returns but underperformed against the benchmark. The strategy's compound annual growth rate (CAGR) was 5.68%, significantly trailing the benchmark's 84.08% by 52.44%. This underperformance underscores the importance of risk management, as it experienced a maximum drawdown of -11.16%. The Sharpe ratio of 0.62 reflects the challenging risk-return profile, emphasizing the need for careful consideration in such a volatile market environment. Investors are advised to remain cautious and consider the broader market context when evaluating this strategy's effectiveness.

CEO Commentary
"STAAR's first quarter sales were in line with expectations, but we can and will do better," said Stephen C. Farrell, CEO of STAAR Surgical. He emphasized that the current results do not reflect the company's earnings potential or brand strength, noting improvements in EVO ICL procedure volumes in China despite macroeconomic challenges. Farrell expressed confidence in resuming normalized sales in China by the third quarter and highlighted growth in key markets outside China. He stated that cost control measures and restructuring activities would align expenses with sales, positioning STAAR for revenue and Adjusted EBITDA growth in the second half of the year.

Guidance
The company expects to resume growth in revenue and Adjusted EBITDA for the full second half of the year. Farrell noted that STAAR's distributors in China are on track to reduce excess inventory by the end of the second quarter, which will support normalized sales. Additionally, the company anticipates that the consigned inventory will be sufficient to meet demand through early fiscal 2026, while cost reductions are projected to lower the annualized SG&A run rate to approximately $225 million by the end of fiscal 2025.

Additional News
In recent developments, Staar Surgical has streamlined its management structure to enhance operational efficiency, with Warren Faust promoted to President and COO. The company is also expanding its manufacturing capabilities in Switzerland, which is expected to help mitigate tariff impacts and support future growth. Additionally, Staar Surgical has focused on cost optimization, aiming to reduce SG&A expenses to approximately $225 million by the end of 2025. These strategic initiatives reflect the company's commitment to improving profitability and navigating current challenges effectively.

Ask Aime: What to do with my Staar Surgical (STAA) stock?

Comments

Add a public comment...
Post
User avatar and name identifying the post author
CyberShellSecurity
05/08
Tariff issues are a nightmare. But expanding in Switzerland could help. Smart move if they can execute.
0
Reply
User avatar and name identifying the post author
Serious_Procedure_19
05/08
What's up with $STAA? Missed targets big time, but CEO's optimistic. Growth in China could be a game-changer. 🤔
0
Reply
User avatar and name identifying the post author
infinitycurvature
05/08
Tariffs are brutal, but Switzerland move helps.
0
Reply
User avatar and name identifying the post author
Janq55
05/08
CEO sounds optimistic, but Q1 was a bummer.
0
Reply
User avatar and name identifying the post author
SelectHuckleberrys
05/08
$STAA needs to fix their distribution game in China. Revenue depends on it. Anyone else bullish on their strategy?
0
Reply
User avatar and name identifying the post author
Solarprobro4
05/08
@SelectHuckleberrys Fixing China distros ain't easy.
0
Reply
User avatar and name identifying the post author
WeakMycologist3198
05/08
"STAAR Surgical just pulled a 'Don't Stop Believin' but with a side of 'Why You Always Got to be so Negative?'
0
Reply
User avatar and name identifying the post author
HJForsythe
05/08
Earnings miss, but CEO's optimistic. Could be a value play if they pull it off. Thoughts?
0
Reply
User avatar and name identifying the post author
cfeltus23
05/08
China slowdown hit hard, but they're adapting. Maybe a rebound in H2 next year? Long-term hold maybe.
0
Reply
User avatar and name identifying the post author
Serious_Procedure_19
05/08
I'm holding a small position. Waiting for them to realign ops and see if they can hit growth targets. Risky but potential reward.
0
Reply
User avatar and name identifying the post author
notbutterface
05/08
Holding $STAA long-term, eyeing potential rebound.
0
Reply
User avatar and name identifying the post author
Janq55
05/08
@notbutterface How long you planning to hold $STAA? Thinking 2025 turnaround?
0
Reply
User avatar and name identifying the post author
userwithpoints
05/08
Holy!the Peak Seeker algorithm successfully identified both trough and apex inflection points in STAA equity's price action, while my execution latency resulted in material opportunity cost.
0
Reply
User avatar and name identifying the post author
BetsMcKenzie
05/08
@userwithpoints What’s the avg. duration you hold stocks? Curious if it’s similar to my strategy or if I should adjust.
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App