Glaukos (GKOS) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Glaukos Corporation GKOS reported a third-quarter 2023 adjusted loss of 50 cents per share, 10.7% narrower than the Zacks Consensus Estimate of a loss of 56 cents.The figure, however, was wider than the year-ago quarter’s adjusted loss of 45 cents per share.
The GAAP loss per share was 63 cents compared with the prior-year quarter’s reported loss of 58 cents.
Revenue Details
Glaukos registered revenues of $78 million in the third quarter, up 10% year over year on a reported basis and 9% at constant currency. The figure also surpassed the Zacks Consensus Estimate by 3.4%.
Quarter in Detail
The company recorded net sales of $58.3 million and $19.7 million for Glaucoma and Corneal Health, respectively, which were up 9% and 12% year over year.
Margin Trend
Gross profit increased 9.4% to $59.5 million in the reported quarter. The gross margin was flat at 76%.
Selling, general and administrative expenses rose 15.1% to $54.2 million. Research and development expenses totaled $33.3 million, up 15.3% year over year. Total operating expenses were $87.5 million, up 15% from that recorded in the prior-year period.
The operating loss amounted to $28 million compared with $21.6 million in the year-ago period. The adjusted operating loss was $21.8 million, wider than the year-ago quarter’s reported loss of $15.3 million.
Financial Update
Glaukos exited third-quarter 2023 with cash and cash equivalents, and short-term investments of $307 million compared with $310 million at the end of the last reported quarter.
2023 Guidance
The company updated its guidance for 2023 revenues. It expects net sales in the range of $307-$310 million compared with the previously stated $304-$308 million, reflecting improving currency translational rates.
Glaukos Corporation Price, Consensus and EPS Surprise
Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote
Our Take
Glaukos exited the third quarter of 2023 with decent results, wherein both earnings and revenues beat their respective estimates. Management is excited regarding the company’s 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 filed a new drug application with the FDA in February and a decision regarding the same 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 amid rising costs and expenses 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 #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, DexCom DXCM and Integer Holdings ITGR.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported third-quarter 2023 adjusted EPS of $1.14, which beat the Zacks Consensus Estimate by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $10.14 billion outpaced the consensus mark by 3.6%.
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 6.76%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, which beat the Zacks Consensus Estimate by 47.1%. Revenues of $975 million beat the Zacks Consensus Estimate by 4%. The company currently carries a Zacks Rank #2.
DXCM has a long-term estimated growth rate of 33.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.43%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27 and revenues of $405 million, which beat their respective Zacks Consensus Estimate by 21% and 8.7%. It currently carries a Zacks Rank #2.
ITGR has a long-term estimated growth rate of 15.8%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.98%.
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