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Glaukos (GKOS) Down 11.1% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Glaukos (GKOS - Free Report) . Shares have lost about 11.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Glaukos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Glaukos Loses 14.3% Despite Narrower Loss in Q1

Shares of Glaukos Corporation have lost 14.3% on May 11, following the company's first-quarter 2021 results.

The company reported first-quarter loss per share of 21 cents, noticeably narrower than the Zacks Consensus Estimate of a loss of 30 cents. Notably, the company had posted a loss per share of 44 cents in the prior-year quarter.

Revenues in Detail

Quarterly net sales were $67.9 million, which surpassed the Zacks Consensus Estimate by 4.9%. On a year-over-year basis, revenues improved 22.8%.

Quarter Details

Gross profit in the first quarter was $51.3 million, up 125.1% year over year. Gross margin was 75.5% of net revenues, up 3430 basis points (bps) on a year-over-year basis.

Operating expenses declined 16.3% to $63.1 million on a year-over-year basis, courtesy of lower selling, general and administrative as well as research and development expenses.

Operating loss in the quarter under review was $11.8 million, significantly narrower than the year-ago quarter’s loss of $52.6 million.

Financial Update

The company exited the first quarter with cash and cash equivalents of $96.6 million, remaining flat on a sequential basis.

During the first quarter, total current assets totaled $474.3 million, compared with $469.4 million in the preceding quarter.

Second Quarter 2021 Guidance

For second-quarter 2021, Glaukos projects net sales between $70 million and $72 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 17.68% due to these changes.

VGM Scores

Currently, Glaukos has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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