Shares of Advanced Medical Optics Inc. bounced back 4% in afternoon trading Friday after an analyst upgraded the Santa Ana-based eye device and contact lens care maker.
That’s a different story from Thursday, when shares fell after Advanced Medical cut its forecasts for this year and 2007.
The company cited slower-than-expected growth in its refractive eye implant and U.S. laser vision correction businesses, and pricing pressures on some of its cataract products sold internationally. The revision was Advanced Medical’s second in recent months.
Citicorp on Friday upgraded Advanced Medical to “buy” from “hold,” saying a combination of Advanced Medical’s “significant cut to 2007 guidance combined with a 15% pullback in the shares offers an attractive entry point with limited near-term earnings risk.”
Advanced Medical revised its 2006 profit forecast down to $109.8 million and $112.7 million on revenue of $1.01 billion to $1.02 billion.
The company previously said it expected a profit of $112.7 million to $115.7 million. Wall Street expects Advanced Medical to earn $114.5 million on revenue of $1.01 billion.
For 2007, Advanced Medical said it forecasts earnings of $133.5 million to $139.4 million on revenue of $1.08 billion to $1.1 billion. Its prior outlook was for a profit of $154.2 million. Analysts expect the company to earn $149.5 million on sales of $1.08 billion in 2007.
