Why Did STAA Stock Surge More Than 19% After-Hours Today?

• The company said that it is announcing its preliminary net sales in advance as it expects to be interacting with investors and members of the ophthalmology community at an annual meeting in Washington DC later this week .
• In the Middle East and some other parts of the EMEA and APAC regions, net sales were negatively affected by significant geopolitical and macroeconomic challenges.
• STAAR also noted that it shipped minimal quantities of certain products to China during the quarter to manage the excess inventory with distributors and the inventory is now within targeted range.

Shares of STAAR Surgical Company (STAA) rallied more than 19% after-hours on Wednesday after the company said that its first quarter (Q1) net sales are expected to exceed $90 million, ahead of Wall Street expectations of $67.59 million.

The company reported net sales of $42.6 million for the corresponding quarter last year.  

STAAR Surgical said that it is announcing its preliminary net sales in advance, before its quarterly earnings, as it expects to be interacting with investors as well as members of the ophthalmology community at an annual meeting in Washington DC later this week.

Geographical Distinctions

STAAR, which makes vision correction solutions that reduces or eliminates the need for glasses or contact lenses, said that it is pleased with its net sales in China, its largest market, for the quarter. China accounted for the majority of the increase in net sales, combined with double digit growth in the Americas, it said.

However, in the Middle East and some other parts of the EMEA and APAC regions, net sales were negatively affected by significant geopolitical and macroeconomic challenges, resulting in a decline in sales in parts of those regions, the company said.

The Lake Forest, California-headquartered company warned that sales growth could continue to be negatively affected in these regions. It also noted that it shipped minimal quantities of certain products to China during the quarter to manage the excess inventory with distributors and the inventory is now within targeted range.

“Our higher net sales, combined with our significantly improved cost structure, are expected to drive a meaningful improvement in adjusted EBITDA (core profit) for the first quarter,” said Deborah Andrews, Interim Co-CEO.

STAAR Surgical is expected to report its full first quarter earnings in early May. Wall Street on average expects adjusted core profit for the quarter to come in at $5.40 million.

How Did Retail Traders React?

On Stocktwits, retail sentiment around STAA stock jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels.  

A Stocktwits user expressed hopes for some price target revisions after the announcement.

Another termed it a “turnaround moment.”

STAA stock has gained 38% over the past 12 months. 

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