shares of star surgical (star 3.25%) According to data provided by S&P Global Market Intelligence, it rose 23.7% this week. The stock has fallen more than 27% over the past 12 months.
STAAR manufactures and markets foldable implantable lenses and delivery systems for the eye, in some cases eliminating the need for contacts or glasses. A foldable lens allows the surgeon to implant the lens into the eye using a small incision.
Investors were encouraged when new CEO Tom Frinzi bought a stake in the company this week. His Frinzi, who replaced Caren Mason, who retired on Dec. 19, bought his 87,805 shares of his STAAR stock on Monday.
The healthcare company had strong sales in the third quarter, reporting revenue of $76 million, up 30% year-over-year, and earnings per share of $0.21, up from $0.12 a year ago.
The company had boosted sales by marketing in China, but overseas sales have slowed due to COVID-19 restrictions in the country and a strong dollar. The California-based company is looking to expand its presence in the United States. One way he does this is by using his latest product, the EVO Visian Implantable Collar Lens (ICL), to train 600 ophthalmologists to use the product.
The company’s previous guidance had projected revenue of $355 million in 2023, up 25% from this year. But when Frinzi was announced as the new CEO, the company refused to repeat that guidance.
This is making investors uneasy, as is Mason’s sudden resignation. STAAR’s stock could easily fall a little bit if the company fails to continue its upward earnings run, or if Q4 numbers fall short of expectations.
In the company’s announcement of the management change, the company briefly said it expects fourth-quarter revenue to be between $64 million and $66 million. He’s still improving from $59 million in Q4 2021, but at the midpoint he’s down nearly 17% in a row.
Jim Halley has no positions in any of the stocks mentioned.The Motley Fool recommends Star Surgical. The Motley Fool’s U.S. headquarters has a disclosure policy.