Glaukos Corporation ( GKOS Quick Quote GKOS - Free Report) reported an adjusted loss per share of 45 cents for the third quarter of 2022, beating the Zacks Consensus Estimate of a loss of 53 cents by 15.1%. However, the third-quarter loss was wider than the adjusted loss of 31 cents reported in the year-ago quarter.
GAAP loss per share for the quarter was 58 cents against earnings of 13 cents per share in the year-ago period. Please note that the prior-year period included a $30 million payment receipt related to the company’s settlement of patent litigation with Ivantis.
Revenues in Detail
Glaukos registered revenues of $71.3 million in the third quarter, down 4.6% year over year on a reported basis and 1.6% at constant currency (cc). The figure, however, surpassed the Zacks Consensus Estimate by 5%.
Quarter in Details
In the quarter under review, Glaukos recorded Glaucoma net sales of $53.7 million and Corneal Health net sales of $17.5 million.
In the quarter under review, Glaukos’ gross profit declined 8.6% to $54.4 million. Gross margin contracted approximately 300 basis points (bps) to 76%.
Selling, general and administrative expenses rose 6% to $47.1 million. Research and development expenses were almost flat year over year at $28.9 million. Total operating expenses of $70.8 million increased 12.2% year over year.
Operating loss in the reported quarter totaled $21.6 million compared with a total operating loss of $11 million in the year-ago quarter.
Glaukos exited third-quarter 2022 with cash and cash equivalents and short-term investments of $371 million compared with $391.2 million at the end of the first quarter.
Glaukos raised the lower range of its revenue guidance for the full year based on solid execution globally and better-than-expected revenues.
For 2022, Glaukos now expects net sales between $278 million and $280 million, compared with the previous projection of net sales between $270 million and $280 million. The Zacks Consensus Estimate for the same stands at $278.41 million.
Glaukos exited the third quarter of 2022 with robust results, wherein earnings and revenues beat estimates.
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 received positive market feedback.
In August, Glaukos announced that it had 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 Key Picks
Currently, Glaukos carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are
Elevance Health, Inc. ( ELV Quick Quote ELV - Free Report) , Medpace Holdings, Inc. ( MEDP Quick Quote MEDP - Free Report) and Merit Medical Systems, Inc. ( MMSI Quick Quote MMSI - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Elevance Health has an earnings yield of 5.5% against the industry’s (2.3%). ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, having a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $384 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 22.7% for 2022. MEDP’s earnings surpassed estimates in the trailing four quarters, the average being 22.04%.
Merit Medical, flaunting a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.