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Tuesday, Apr 7, 2026

AMO Shares Hit on Forecast

Shares of Advanced Medical Optics Inc. closed down 16% Tuesday, after the Santa Ana-based eye device and contact lens care maker cut its outlook for this year.

Advanced Medical said Monday that it expects its 2006 profit to come in at $112.7 million to $115.7 million, compared to a previous forecast of $140.8 million to $151.8 million.

The device maker said it expects revenue of about $1.01 billion to $1.02 billion.

Analysts were expecting Advanced Medical to earn $124.6 million on revenue of $1.03 billion this year.

The company said it was lowering its forecast because of a sluggish shift in its sales mix to premium-priced products, softer-than-expected laser vision correction volumes, overseas government reimbursement pressures and recent strikes by European eye surgeons who use the company’s cataract products.

For 2007, Advanced Medical said it expects to earn $154.2 million on $1.1 billion in revenue. Analysts expect the company to make $159.6 million on revenue of $1.11 billion.

The company’s shares closed at $38.75, but were up slightly in afterhours trading.

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