EYE Q4 Loss Narrower Than Expected, Margins Rise, Stock Surges

National Vision Holdings, Inc. EYE delivered a loss of 4 cents in the fourth quarter of 2024 compared with the year-ago period’s loss of 2 cents. However, the figure was narrower than the Zacks Consensus Estimate of a loss of 5 cents.   Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The GAAP loss from continuing operations was 37 cents per share compared with a loss of 19 cents in the prior-year quarter.The full-year 2024 GAAP loss from continuing operations was 35 cents per share against earnings of 5 cents in 2023.National Vision’s RevenuesIn fiscal 2024, the company ceased its Walmart and AC Lens operations. Accordingly, the consolidated financial statements classify the results of the former Legacy segment and the substantial majority of AC Lens operations as discontinued operations for all periods presented.As of Dec. 28, 2024, National Vision operates under one reportable segment, Owned & Host.Net revenues from continuing operations in the fourth quarter totaled $437.3 million, which came in line with the Zacks Consensus Estimate.  The top line rose 3.9% from the year-ago quarter’s number, driven by growth from new store sales and adjusted comparable store sales growth and the effect of unearned revenues.National Vision Holdings, Inc. Price, Consensus and EPS Surprise National Vision Holdings, Inc. price-consensus-eps-surprise-chart | National Vision Holdings, Inc. QuoteIn the fourth quarter, comparable store sales growth was 2.6% year over year. Adjusted comparable store sales growth was 1.5%. National Vision opened 20 new stores and ended the period with 1,240 stores. Overall, the store count rose 4.4% year over year.Full-year 2024 net revenues from continuing operations were $1.82 billion, up 3.8% from the 2023 levels.Following the earnings announcement, shares of EYE rose 11.6%, finishing at $12.77 yesterday.National Vision’s Q4 Margin PerformanceOn a consolidated basis, the gross profit in the fourth quarter rose 6.6% from the prior-year quarter’s level to $252.3 million. The gross margin expanded 149 basis points (bps) despite a 0.3% rise in the cost of revenues (comprising products, services and plans).SG&A expenses increased 3.3% year over year to $233 million. The adjusted operating margin was 4.4%, which expanded 180 bps year over year.National Vision’s Financial PositionNational Vision exited the fourth quarter with cash and cash equivalents of $73.9 million compared with $149.9 million at the end of 2023.The cumulative net cash flow from operating activities at the end of the quarter was $133.6 million compared with $173 million a year ago.National Vision Issues 2025 ViewNational Vision provided its outlook for the 53 weeks ending Jan. 3, 2026. In addition, the company estimates that the 53rd week of fiscal 2025 will contribute approximately $35 million to net revenues and nearly $3 million to adjusted operating income.Fiscal 2025 revenues are expected in the range of 1.901-$1.955 billion. The Zacks Consensus Estimate for the metric currently stands at $1.89 billion.Adjusted comparable store sales are expected to grow 0.5%-3.5%. Adjusted EPS is estimated in the band of 52-64 cents. The Zacks Consensus Estimate is currently pegged at 51 cents.Our Take on National VisionNational Vision reported a narrower loss and in-line revenues in the fourth quarter of 2024. The company delivered the eighth consecutive quarter of positive comparable store sales growth, driven by new selling methods and targeted pricing actions. Sales also benefited from strong Managed Care sales, which helped offset the ongoing relative softness in cash pay sales. The expansion of both margins in the quarter is also highly encouraging.Following a comprehensive review of the store fleet, National Vision is implementing actions on 43 stores through fiscal year 2026 to improve the underlying foundation of the core business. The company entered 2025 prepared to accelerate its next transformation phase, built on the groundwork laid in the second half of fiscal 2024.Meanwhile, National Vision’s fiscal 2025 outlook takes into account the potential impact of macroeconomic factors, including inflation, geopolitical instability, recession risks and constraints on exam capacity.EYE’s Zacks Rank and Key PicksNational Vision currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Insulet PODD.ResMed reported a second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.Cardinal Health, carrying a Zacks Rank #2, posted a second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Insulet, carrying a Zacks Rank #2, posted a fourth-quarter 2024 adjusted EPS of $1.15, topping the Zacks Consensus Estimate by 9.5%. Revenues of $597.5 million exceeded the Zacks Consensus Estimate by 2.7%.PODD has an estimated long-term earnings growth rate of 20.3% compared with the industry’s 15.5% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 27.5%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report National Vision Holdings, Inc. (EYE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks