Back to top

Image: Bigstock

GKOS Stock Declines Despite Q3 Earnings & Revenues Beat Estimates

Read MoreHide Full Article

Glaukos Corporation (GKOS - Free Report) reported third-quarter 2024 adjusted loss of 28 cents per share, surpassing the Zacks Consensus Estimate by 46.15%. The figure was narrower than the year-ago quarter’s adjusted loss of 50 cents per share.

The GAAP loss per share was 39 cents compared with the prior-year quarter’s reported loss of 63 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Revenue Details

Glaukos registered revenues of $96.7 million in the third quarter, up 23.9% year over year on a reported basis as well as at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 5.9%.

Quarter in Detail

The company recorded net sales of $76 million and $20.6 million for Glaucoma and Corneal Health, respectively, up 30% and 5% year over year.

Glaukos Corporation Price, Consensus and EPS Surprise

Glaukos Corporation Price, Consensus and EPS Surprise

Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote

Margin Analysis

Gross profit increased 24.4% year over year to $74.1 million. However, the adjusted gross margin was 82.4% compared with 83.4% in the year-ago period.

Selling, general and administrative expenses rose 17.9% year over year to $64 million. Research and development expenses totaled $34.7 million, up 4.3% year over year. Total operating expenses were $98.7 million, up 12.8% from that recorded in the prior-year period.

The operating loss declined to $24.7 million from $28 million in the year-ago period. The adjusted operating loss was $18.4 million, narrower than the year-ago quarter’s reported loss of $21.8 million.

Financial Update

Glaukos exited the third quarter of 2024 with cash and cash equivalents and short-term investments of $267.2 million compared with $266.4 million at the end of second-quarter fiscal 2024.

2024 Guidance

The company revised its guidance for 2024 revenues. It now expects net sales in the range of $377-$379 million compared with the previous guidance of $370-$376 million. The Zacks Consensus Estimate for the same is pegged at $373.9 million.

Our Take

Glaukos' exited the third quarter of 2024 with better-than-expected results wherein earnings and revenues surpassed their respective consensus estimates, while revenues beat the same. Management remains excited regarding the company’s continued top-line growth in the reported quarter.

During the third quarter, GKOS’ glaucoma franchise witnessed revenue growth, driven by its iStent portfolio, coupled with growing contributions from iDose TR. The company reported the successful execution of detailed launch plans for iDose TR during the third quarter. The unique permanent J-code for iDose TR became effective on July 1. This is likely to increase patient access, driving sales growth in the upcoming quarters. Per management, during the reported quarter, five of the seven Medicare Administrative Contractors issued final local coverage determinations for microinvasive glaucoma surgery that will establish coverage for iStent infinite.

GKOS continues to invest in its product pipeline. It targets NDA submission for its corneal cross-linking therapy, Epioxa, by the end of 2024. Per the third-quarter earnings call, management announced positive topline outcomes in the second Phase 3 pivotal study for Epioxa, and the therapy met the study's primary efficacy endpoint. The company also remains on track to commence a phase 3 clinical trial for its next-generation iDose therapy, iDose TREX, by the end of 2024.

However, GKOS’ operating loss in the reported quarter amid rising costs and expenses raised our apprehension. Its operation in a stiff, competitive market is also worrisome.

Shares of GKOS lost 9% during after-market trading following the third-quarter results. However, the company’s shares have gained 65.3% year to date compared with the industry’s rise of 4.7%. The broader S&P 500 Index has increased 20.1% in the same time frame.

Zacks Investment Research
Image Source: Zacks Investment Research

GKOS’s Zacks Rank & Stocks to Consider

GKOS carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are AngioDynamics (ANGO - Free Report) , Quest Diagnostics (DGX - Free Report) and RadNet (RDNT - Free Report) . While AngioDynamics sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 42% compared with the industry's 14.9% growth year to date.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.

RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.

Published in