Glaukos (GKOS) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Glaukos Corporation GKOS reported a second-quarter 2023 adjusted loss of 55 cents per share, which was 3.5% narrower than the Zacks Consensus Estimate of a loss of 57 cents.The figure was narrower than the year-ago quarter’s adjusted loss of 83 cents.
The GAAP loss per share was 68 cents compared with the prior-year quarter’s loss of 96 cents.
Revenue Details
Glaukos registered revenues of $80.4 million in the second quarter, up 9% year over year on a reported basis and 11% at constant currency. The figure also surpassed the Zacks Consensus Estimate by 8%.
Quarter in Detail
The company recorded net sales of $61.9 million and $18.5 million for Glaucoma and Corneal Health, which were up 10% and 11% year over year, respectively.
Margin Trend
Gross profit increased 9.9% to $60.3 million in the reported quarter. The gross margin was flat at 75%.
Selling, general and administrative expenses rose 6% to $53.1 million. Research and development expenses totaled $33.2 million, up 5% year over year. Total operating expenses were $88.8 million, up 118% from that recorded in the prior-year period.
The operating loss amounted to $29.1 million compared with the total operating loss of $36.8 million in the year-ago period. The adjusted operating loss was $22.8 million, narrower than the year-ago quarter’s loss of $30.4 million.
Financial Update
Glaukos exited second-quarter 2023 with cash and cash equivalents, and short-term investments of $310 million compared with $325 million at the end of the last reported quarter.
Glaukos Corporation Price, Consensus and EPS Surprise
Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote
2023 Guidance
The company updated its guidance for 2023 revenues. It expects net sales of $304-$308 million compared with the previously stated $295-$300 million, reflecting improving currency translational rates.
Our Take
Glaukos exited the second quarter of 2023 with decent results, wherein revenues and earnings beat estimates. The company’s management is excited regarding its return to top-line growth in the reported quarter.
GKOS has launched several products, including iPrime, iAccess and iStent, in the past few quarters, which are aiding its revenue growth. The company has been focused on delivering improved outcomes for patients suffering from chronic eye diseases. It does so by continuing to develop a pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care.
One of the advanced pipeline candidates, iDose TR, has been successfully tested in a phase III study. Glaukos has filed a new drug application with the FDA in February and a decision is expected later this year. The company stated that the targeted population is 3 million in the United States every year.
However, GKOS’ operating loss in the reported quarter raised our apprehension. Its operation in a stiff competitive market is also worrisome.
Zacks Rank and Stocks to Consider
Currently, Glaukos carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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