Shares of Advanced Medical Optics Inc. surged Wednesday after the Santa Ana eye device maker reported higher third-quarter profits, excluding charges.
Advanced Medical said it earned $23.2 million in profits after charges, beating Wall Street’s expectations. The company also forecast 2006 and 2007 profits above Wall Street estimates.
For the third quarter, analysts expected Advanced Medical to earn $22.4 million on revenue of $243 million.
Revenue was up 25% to $248.2 million, driven by a 50% surge in eye surgical sales to $170.6 million.
Sales from the recently acquired Visx laser correction business contributed $47.7 million.
With charges, Advanced Medical lost $31.2 million in the third quarter, down from a net loss of $31.7 million a year ago.
Advanced Medical recorded $55.6 million of after-tax charges in the quarter.
The company reiterated its 2005 full-year guidance of $95.8 million to $99.1 million in profits on sales of $920 million to $930 million.
The company also reaffirmed its 2006 outlook of $145.3 million and $151.9 million in profit on revenue of $1.02 billion to $1.04 billion.
For 2007, Advanced Medical said it should earn $175 million on revenue of $1.1 billion to $1.12 billion.
Most of the projections are above what Wall Street had expected.
