Glaukos (GKOS) Up 24.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Glaukos (GKOS). Shares have added about 24.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Glaukos due for a pullback? 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 Reports Loss in Q3, Revenues Surpass Estimates
Glaukos Corporation reported third-quarter loss per share of 9 cents, significantly narrower than the Zacks Consensus Estimate of a loss of 46 cents. Notably, the company had delivered loss per share of 10 cents in the prior-year quarter.
Revenues in Detail
Quarterly net sales totaled $64.8 million, which surpassed the Zacks Consensus Estimate by 19.6%. On a year-over-year basis, revenues improved 10.8%.
Quarter Details
Gross profit in the third quarter was $46.9 million, down 7.7% year over year. Gross margin was 72.3% of net revenues, down 1450 basis points on a year-over-year basis.
Operating expenses declined 6.3% to $59.3 million on a year-over-year basis, courtesy of lower selling, general and administrative expenses.
Operating loss in the quarter under review was $12.4 million, remaining flat on a year-over-year basis.
Financial Update
The company exited the third quarter with cash and cash equivalents of $80.9 million, down from $266.9 million on a sequential basis.
During the third quarter, total current assets totaled $454.4 million, compared with $453.2 million in the preceding quarter.
2020 Guidance
Glaukos has withdrawn its previously announced (Feb 27, 2020) annual guidance for 2020 due to the rapidly evolving environment and persistent uncertainties stemming from the COVID-19 pandemic. At this point, the company is unable to estimate the scope and duration of the impact of the pandemic on its financial and operating results.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Glaukos has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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 indicates a downward shift. 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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