Shares of National Vision Holdings (NASDAQ:EYE) rose 5.3% in premarket trading on Wednesday after the company reported first-quarter earnings that exceeded analyst forecasts, even though revenue came in slightly below expectations.
Investors appeared encouraged by improved profitability and stronger operating margins during the quarter.
Earnings beat estimates as profitability improves
National Vision posted adjusted earnings per share of $0.45 for the quarter ended April 4, ahead of analyst expectations of $0.43 per share.
Quarterly revenue totaled $543.9 million, narrowly missing the consensus estimate of $545.13 million. Revenue nevertheless increased 6.6% from $510.3 million in the same period a year earlier.
Net income rose sharply to $31.2 million from $14.2 million in the prior-year quarter, while net income margin expanded to 5.7% from 2.8%.
Margins expand on stronger operational performance
The company reported significant operating leverage during the quarter, with adjusted operating income climbing 34.4% to $55.5 million.
Adjusted operating margin improved by 210 basis points to 10.2%, compared with 8.1% a year earlier.
Comparable store sales increased 4.4%, while adjusted comparable store sales growth reached 4.5%, supported by higher average transaction values and continued momentum in the managed care segment.
“We delivered a solid first quarter, reinforcing that the transformation we laid out at Investor Day is translating into higher-quality growth and improved profitability,” said Alex Wilkes, chief executive officer of the company.
“Customers continued to opt into better products, we expanded our managed care business, and we meaningfully grew operating margins through disciplined expense management,” Wilkes added.
Full-year guidance maintained
For fiscal 2026, National Vision reiterated its adjusted earnings-per-share guidance range of $0.85 to $1.09. The midpoint of $0.97 remained slightly below analyst consensus expectations of $0.99.
The company also maintained its revenue outlook of between $2.03 billion and $2.09 billion for the full year, with the midpoint of $2.06 billion modestly below the market consensus forecast of $2.07 billion.
Military retail expansion continues
National Vision said it expanded its military retail presence in April by adding 20 new stores through an agreement with the Army and Air Force Exchange Service.
Under the agreement, National Vision became the exclusive optical retail partner across AAFES bases in the United States.