Glaukos Corporation ( GKOS Quick Quote GKOS - Free Report) reported an adjusted loss per share of 83 cents for the second quarter of 2022, wider than the adjusted loss of 22 cents reported in the year-ago quarter as well as the Zacks Consensus Estimate of a loss of 44 cents. The significant widening of loss was due to lower revenues as well as higher operating and non-operating expenses.
GAAP earnings per share (“EPS”) for the quarter were 96 cents against a loss of 38 cents per share in the year-ago period.
Revenues in Detail
Glaukos registered revenues of $72.7 million in the second quarter, down 6.9% year over year on a reported basis. The figure, however, surpassed the Zacks Consensus Estimate by 7.5%.
Quarter in Details
In the quarter under review, Glaukos recorded Glaucoma net sales of $56.1 million and Corneal Health net sales of $16.6 million.
In the quarter under review, Glaukos’ gross profit rose 16.9% to $73.5 million. Gross margin contracted approximately 200 basis points (bps) to 75%.
Selling, general and administrative expenses rose 10% to $49.9 million. Research and development expenses went up 31% year over year to $31.7 million. Total operating expenses of $70.8 million increased 12.2% year over year.
Operating loss in the reported quarter totaled $91.6 million compared with a total operating loss of $74.6 million in the year-ago quarter.
Glaukos exited second-quarter 2022 with cash and cash equivalents, and short-term investments of $391.2 million compared with $415.4 million at the end of the first quarter.
Glaukos raised the upper range of its revenue outlook for the full year based on solid execution globally and better-than-expected revenues.
For 2022, Glaukos now expects net sales between $270 million and $280 million, compared with the previous projection of net sales between $270 million and $275 million. The Zacks Consensus Estimate for the same stands at $273.37 million.
Glaukos exited the second quarter of 2022 with mixed results, wherein earnings missed estimates but revenues beat the same.
It launched iPrime — a new disco elastic delivery device — in the latter part of the second quarter. In the latter part of the first quarter, the company had launched the iAccess device for go anatomy procedures. The addition of these new devices will provide unique solutions designed to grow and improve treatment options for surgeons, customers and patients. The company’s iAccess device has positive market feedback.
In a separate press release, Glaukos announced that it received the FDA 510(K) clearance for iStent infinite — the first FDA-cleared micro-invasive implantable device used as a standalone treatment option for glaucoma patients to reduce elevated intraocular pressure. The potential launch of the product, expected later this year, will likely accelerate Glaucoma net sales growth going forward. The company is also developing several other treatment options in its pipeline. These developments raise our optimism about the stock.
However, wider adjusted loss per share and lower overall revenues on a year-over-year basis are disappointing. Glaukos incurred an operating loss in the reported quarter, raising our apprehension. The company’s operation in a stiff competitive space is also worrying.
Zacks Rank and Other Key Picks
Currently, Glaukos carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the pharma/biotech sector include
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