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Glaukos (GKOS) Q1 Earnings and Revenues Miss Estimates

Zacks Equity Research

Glaukos Corporation GKOS reported first-quarter 2020 loss per share of 44 cents, wider than the Zacks Consensus Estimate of a loss of 35 cents. Notably, the company had delivered loss per share of 4 cents a year ago.

Revenues in Detail

Quarterly net sales totaled $55.3 million, which missed the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, revenues improved 2.4%. Per management, the upside can be attributed to contribution from the Avedro buyout. However, disruptions related to COVID-19 mainly offset the upside.  

Quarter Details

Gross profit in the first quarter was $22.8 million, down 51.4% year over year. Gross margin quarter was 41.2% of net revenues, down 4562 basis points on a year-over-year basis.

Operating expenses increased 54.4% to $75.4 million on a year-over-year basis, courtesy of higher selling, general and administrative, and research and development expenses.

Glaukos Corporation Price, Consensus and EPS Surprise


Glaukos Corporation Price, Consensus and EPS Surprise

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

Financial Update

The company exited the first quarter with cash and cash equivalents of $53.6 million, down from $62.4 million at the end of 2019.

During the first quarter, total current assets came in at $231.4 million compared with $262.9 million at the end of 2019.

2020 Guidance

Glaukos has withdrawn its previously announced (Feb 27, 2020) annual guidance for 2020 due to the uncertainties emanating from the COVID-19 pandemic.

Our Take

Glaukos exited the first quarter on a dismal note.Nonetheless, the company witnessed another solid quarter, reflecting substantial growth at its global Glaucoma franchise, advancement in its market-expanding pipeline and execution of quite a few business development growth initiatives that includes the Avedro buyout.

However, surging operating expenses remain a concern. Glaukos also faces cut-throat competition in the Medical Devices space. The company witnessed a contraction in its gross margin in the quarter under review.

Zacks Rank and Key Picks

Glaukos currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Aphria Inc. APHA, Biogen Inc. BIIB and Eli Lilly and Company LLY.

Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.

Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.

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