Bausch & Lomb Earnings: Broad-Based Growth and Margin Gains Deliver Solid Results

Narrow-moat Bausch & Lomb reported solid third-quarter earnings that came in a tad higher than our expectations. Total sales of $1.2 billion were up 18.8% year over year driven by growth from all three segments. Regionally, both US and international delivered double-digit gains as solid execution shined across markets. BL also made solid strides improving margins during the quarter as cooling inflationary pressures and cost management expanded bottom line. After inching up our full-year estimates and accounting for time value of money, we raise our fair value estimate to $20 (CAD 27.50) per share from $19 (CAD 26).