STAAR Surgical Company (NASDAQ:STAA) stock is trading lower on Friday after reporting preliminary net sales for the second quarter of over $90 million, compared to net sales of $44.3 million a year ago.
The contact lens company expects a rebound in the Chinese market and solid momentum in the Americas, despite ongoing macroeconomic and geopolitical challenges in certain overseas regions.
Regional Performance And China Recovery
The quarterly performance was heavily influenced by sequential growth within China, alongside healthy gains throughout the broader Asia-Pacific territory.
Furthermore, the Americas region recorded a double-digit percentage increase in sales, demonstrating solid momentum in that market.
The substantial year-over-year growth is largely tied to normalized operations in China.
During the second quarter of 2025, the company notably limited shipments of its EVO Implantable Collamer Lenses to the country, deliberately allowing local distributors to clear excess stock.
By the end of this recent second quarter, distributor inventory levels had successfully returned to the company’s optimal target range to appropriately serve the refractive market.
Geopolitical Headwinds And EMEA Impact
While broader sales remained strong, the Europe, Middle East, and Africa (EMEA) segment experienced a low single-digit percentage decline.
This drop was directly attributed to the ongoing conflict in the Middle East.
However, when excluding Middle Eastern operations, the remainder of the EMEA market achieved double-digit percentage growth, highlighting the resilience of the underlying business across that region.
Significant geopolitical and macroeconomic obstacles continue to weigh on sales in the Middle East, as well as specific areas within the EMEA and Asia-Pacific regions.
Company management remains vigilant in monitoring these conditions, warning that if current headwinds intensify or spread to other global markets, future revenue growth could face negative impacts.
“While geopolitical and macroeconomic pressures continue to present headwinds in certain markets, and while our ERP system implementation presented meaningful operational challenges during the quarter, our team again rose to the occasion and delivered strong results,” said Warren Foust, Co-CEO, President and Chief Operating Officer.
We remain focused on resolving the remaining system issues in the third quarter and are confident in the continued momentum of our business,” Foust commented.
How STAA Ranks On Value And Momentum Versus Peers
Below is the Benzinga Edge scorecard for Staar Surgical, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 17.3) — Trading at a steep premium relative to peers.
- Momentum: Bullish (Score: 90.95) — Stock is outperforming the broader market.
The Verdict: Staar Surgical’s Benzinga Edge signal reveals a growth-heavy profile with strong momentum, indicating potential for continued upward movement if the company successfully executes its strategic objectives. However, the low value score suggests caution for investors considering entry points.
STAA Stock Price Activity: Staar Surgical shares were down 8.49% at $26.52 during premarket trading on Friday, according to Benzinga Pro data.
Photo Courtesy: Piotr Swat on Shutterstock.com
Login to comment