Alcon (NYSE: ALC) reported Q1 EPS of $0.45, $0.10 better than the analyst estimate of $0.35. Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.71 billion.

• Solid first quarter sales of $1.8 billion, an increase of 3%, or 4% constant currency
• Successful launch of PATADAY strengthens Alcon's leadership in the US OTC allergy market
• Decline in global demand for surgical procedures will negatively impact second quarter results
• Focus on associate safety, business continuity and financial flexibility

"Our first quarter reflects the solid underlying growth prospects of our business," said David Endicott, Chief Executive Officer. "We saw strong sales growth in both franchises during the first two months of the year, led by key growth brands and new product launches. However, as the COVID-19 outbreak spread worldwide, the widespread shutdowns negatively impacted demand by mid-March."

Mr. Endicott continued, “As we navigate these challenging conditions, we remain focused on the safety of our associates and supporting our customers. To help contribute to our community safety, our associates are producing personal protective equipment and hand sanitizers for first responders, which is a testament to the resourcefulness of our people. Lastly, we are taking decisive actions to maintain our global supply chain and control our expenses and cash flow. Although we expect a significant impact on second quarter results, the prudent actions we are taking will prepare us for recovery and preserve the ability to pursue our long-term goals."

Financial Outlook

Due to the uncertain scope and duration of the ongoing COVID-19 outbreak, the Company is unable to provide an estimate for financial results for the full year 2020.

The Company is actively managing working capital, cash flow and expenses and prioritizing capital allocation needs to preserve liquidity. In addition, the Company is focused on inventory management and preparing its commercial programs to support customer and patient needs as markets reopen.

While second quarter results will be negatively impacted by the health crisis, given the critical nature of eye care, customer demand is expected to resume when underlying conditions normalize and gradually lead to an improvement in the back half of the year.

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