Staar Surgical continued a years-long trend of beating Wall Street's quarterly earnings estimates, leading STAA stock to jump Thursday.
The eye lens specialist reported adjusted earnings of 42 cents per share — almost double the 23 cents that analysts predicted. Staar has topped analysts' profit estimates since at least 2018, the farthest back that FactSet's records go. Sales also beat expectations for the second straight quarter, at $81.1 million.
Year over year, Staar's earnings surged 56% and sales rose 30%.
On today's stock market, STAA stock surged 16.7% to 102.03.
Needham analyst David Saxon noted Staar is showing strength despite a tricky macro backdrop.
"With continued strength in China, the U.S. rollout building and Viva as a future potential driver, we expect Staar's revenue growth to remain strong," he said in a report to clients. Viva is a new implantable lens to help people see things up close.
STAA Stock: Leaning On U.S., China
Chief Executive Caren Mason cited growth in China and the U.S. for Staar's strong quarterly sales. The company makes corrective, implantable lenses for the eyes. Those regions are "the two largest markets for refraction vision correction," she said in a written statement.
"The entire Staar organization is energized by our ability to effectively manage Covid-19 challenges during the quarter, exceed our growth commitments and vault to a new record level of $81.1 million in quarterly net sales despite foreign currency headwinds," she said.
Needham's Saxon kept his buy rating on STAA stock and raised his price target to 110 from 87.
"We believe Staar's revenue growth and margin expansion potential can drive meaningful durable earnings growth," he said.
Staar stock has steadily climbed from a bottom in May. Shares hit their highest point since November on Thursday and now have a strong Relative Strength Rating of 93. This puts STAA stock in the top 7% of all stocks in terms of 12-month performance.
Shares also have a strong Composite Rating of 93 out of a best-possible 99. So, STAA stock also ranks in the leading 7% of all stocks for fundamental and technical measures, according to IBD Digital. The medical stock also recently retook its 200-day moving average, MarketSmith.com shows.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
