STAAR Surgical (NASDAQ: STAA) stock was up by 16% as of 3:36 p.m. ET on Thursday after it smashed the market's expectations for its second-quarter earnings, reporting net sales of $81.1 million and $0.26 in net income per diluted share. That works out to be 30% growth in its total revenue year over year, driven by a 45% rise in the number of implantable lens units it sold in China.
The icing on the cake was its performance in India, where it sold 181% more lenses than in the same quarter a year prior.
The strong sales in China and India indicate that STAAR's ongoing push into major international vision correction markets is going swimmingly. Right now, its market share in China is estimated to be above 20%, which bodes well for its future performance there.
Furthermore, the earnings report lacks any mention of struggles with the global supply chain or inflation, so it's a good sign for its prospects for the rest of the year. But, management did cite ongoing pandemic disruptions as being a headwind for its China segment, even though demand remains strong.
The company expects to bring in around $295 million in net sales this year, which would be its largest total ever. Selling, general, and administrative (SG&A) expenses will likely continue to rise at least through the end of the year, as continuing to scale up its international expansion will require more spending to maintain a larger sales force. It'll also likely soon have more than the 9% share of theglobal marketfor implantable collamer lenses that it held in 2021.
Assuming all goes well with the next couple of quarters, it'll retain its position as the leading implantable lens company without breaking a sweat, and its share price could start to recover from its recent stumbles.
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