What Happened?
Shares of optical retailer National Vision (NYSE: EYE) fell 7.5% in the morning session after its third-quarter earnings report revealed a mixed financial performance that overshadowed its top-line beat.
The optical retailer reported revenue of $487.3 million, a 7.9% year-on-year increase that surpassed analysts' expectations, and it also lifted its full-year revenue outlook. However, other key metrics failed to impress investors. The company's adjusted EBITDA of $41.82 million fell short of Wall Street's estimates. Furthermore, while National Vision raised its full-year earnings per share (EPS) guidance, the new forecast was considered disappointing and missed consensus projections. The quarter's adjusted EPS of $0.13 merely met expectations, providing no positive surprise. This combination of an EBITDA miss and a weak profit outlook likely prompted the negative market reaction.
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What Is The Market Telling Us
National Vision’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 21.7% on the news that the company reported strong fourth quarter 2024 results: Revenue beat slightly, and EPS was just in line. New store openings and higher average ticket prices drove sales, although lower online sales and store closures offset some gains. Looking ahead, National Vision's full-year guidance was a bright spot, with both revenue and EPS outlook surpassing Wall Street's expectations. This outlook is lifting shares.
National Vision is up 128% since the beginning of the year, but at $24.36 per share, it is still trading 16.8% below its 52-week high of $29.26 from October 2025. Investors who bought $1,000 worth of National Vision’s shares 5 years ago would now be looking at an investment worth $543.14.
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