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Why Is Glaukos (GKOS) Down 7.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Glaukos (GKOS - Free Report) . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Glaukos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Glaukos Q4 Earnings and Revenues Surpass Estimates
Glaukos Corporation reported fourth-quarter loss per share of 2 cents, significantly narrower than the Zacks Consensus Estimate of a loss of 32 cents. Notably, the company had delivered a loss per share of 6 cents in the prior-year quarter.
For the full-year 2020, the company reported a loss of $1.15 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41 per share. It had delivered loss per share of 10 cents in 2019.
Revenues in Detail
Quarterly net sales totaled $73.2 million, which surpassed the Zacks Consensus Estimate by 0.3%. On a year-over-year basis, revenues improved 11.2%.
For the full-year 2020, the company’s net sales amounted to $224.9 million, down 5.1% from the previous year. The figure beat the consensus mark by 0.1%.
Quarter Details
Gross profit in the fourth quarter was $53.6 million, up 7.4% year over year. Gross margin was 73.3% of net revenues, down 250 basis points (bps) on a year-over-year basis.
Operating expenses declined 18.3% to $65 million on a year-over-year basis, courtesy of lower selling, general and administrative expenses.
Operating loss in the quarter under review was $11.4 million, significantly narrower than the year-ago quarter’s loss of $29.7 million.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $96.6 million, up from $80.9 million on a sequential basis.
During the fourth quarter, total current assets totaled $469.4 million, compared with $454.4 million in the preceding quarter.
First Quarter 2021 Guidance
For first-quarter 2021, Glaukos projects net sales to grow around 15-20% on a year-over-year basis.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 18.15% due to these changes.
VGM Scores
At this time, Glaukos has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 looks promising. 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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Why Is Glaukos (GKOS) Down 7.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Glaukos (GKOS - Free Report) . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Glaukos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Glaukos Q4 Earnings and Revenues Surpass Estimates
Glaukos Corporation reported fourth-quarter loss per share of 2 cents, significantly narrower than the Zacks Consensus Estimate of a loss of 32 cents. Notably, the company had delivered a loss per share of 6 cents in the prior-year quarter.
For the full-year 2020, the company reported a loss of $1.15 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41 per share. It had delivered loss per share of 10 cents in 2019.
Revenues in Detail
Quarterly net sales totaled $73.2 million, which surpassed the Zacks Consensus Estimate by 0.3%. On a year-over-year basis, revenues improved 11.2%.
For the full-year 2020, the company’s net sales amounted to $224.9 million, down 5.1% from the previous year. The figure beat the consensus mark by 0.1%.
Quarter Details
Gross profit in the fourth quarter was $53.6 million, up 7.4% year over year. Gross margin was 73.3% of net revenues, down 250 basis points (bps) on a year-over-year basis.
Operating expenses declined 18.3% to $65 million on a year-over-year basis, courtesy of lower selling, general and administrative expenses.
Operating loss in the quarter under review was $11.4 million, significantly narrower than the year-ago quarter’s loss of $29.7 million.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $96.6 million, up from $80.9 million on a sequential basis.
During the fourth quarter, total current assets totaled $469.4 million, compared with $454.4 million in the preceding quarter.
First Quarter 2021 Guidance
For first-quarter 2021, Glaukos projects net sales to grow around 15-20% on a year-over-year basis.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 18.15% due to these changes.
VGM Scores
At this time, Glaukos has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 looks promising. Notably, Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.