Big Q1 Beat W/ Improved OpEx Spend, But No Guidance; We Wait For More Clarity

Research evidence excerpt

Big Q1 Beat W/ Improved OpEx Spend, But No Guidance; We Wait For More Clarity

il) US$324.6 US$368.7 Street’s $43.6M but missed our $46.3M). GM of 73.6% beat our target of 73.5% but

FY26E EPS US$0.64 US$0.84

missed the Street’s 74.8%, while operating margins of 8.5% handily beat our and Street’s

FY27E EPS US$1.09 US$1.44

estimates (Street -0.1%, PSC -5.5%). All-in, the company posted EPS of $0.10, above

the consensus estimate of $0.03. 52-Week High / Low US$30.81 / US$15.59

Shares Out (mil) 50.9

Market Cap. (mil) US$1,496.5

• Key Takeaways from the Call. (1) The China business posted a clean quarter with sales Avg Daily Vol (000) 1,260

of $47.4M, beating Street estimates of $33.8M and our $22.5M bogey. Management Div Yield 0.00%

noted that inventory levels are within “targeted ranges” and that it was able to grow sales Fiscal Year End Dec

while maintaining and even slightly decreasing inventory levels in the quarter (indicative

of underlying demand). (2) STAA is pleased with the EVO+ ICL launch in China as Price Performance - 1 Year

customers are accepting the pricing premium, which we think could provide an ASP USD

tailwind as the year progresses. The production ramp at the new Swiss manufacturing 35

plant (which produces all of the EVO+ supply) appears to be going well, and the company

expects to be able to supply the market fully by the end of Q2. (3) STAA’s U.S. business 30

also posted a solid quarter, with revenues of $6.7M (+22% y/y) beating Street estimates,

driven by increased surgeon adoption and improved commercial execution. (4) P&L 25

performance was strong in the quarter with opex spend down y/y and coming in well 20

below our and Street expectations. STAA is committed to $225M op ex spend (excl.