EssilorLuxottica reported a strong acceleration in third-quarter revenue of 11.7%, driven by the increased adoption of wearables like Ray-Ban Meta and Oakley Meta glasses. Shares surged nearly 12% as a result. Wearable prescription penetration in own-channels is at 20%, with one-third utilizing antireflective technology. The company aims to produce 10 million wearables by 2026, potentially contributing around 10% of 2024 revenue. Despite this positive performance, shares are trading at 36 times forward earnings and are considered expensive. The company’s fair value estimate remains at EUR 180 per share.

Read more at Morningstar: Sales of Wearables Drive Stellar Growth In the Quarter; Shares Expensive