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Glaukos Corporation (GKOS - Free Report) reported first-quarter 2023 adjusted loss of 59 cents per share, which was 3.3% narrower than the Zacks Consensus Estimate of a loss of 61 cents.The figure, however, was wider than the year-ago quarter’s reported adjusted loss of 38 cents per share.
GAAP loss per share was 72 cents against the prior-year quarter’s reported earnings of 11 cents per share.
Revenues in Detail
Glaukos registered revenues of $73.9 million in the first quarter, up 9% year over year on a reported basis and 11% at constant currency. The figure also surpassed the Zacks Consensus Estimate by 10.4%.
Quarter in Details
The company recorded net sales of $56.2 million and $17.7 million for Glaucoma and Corneal Health, respectively.
Margin Trend
Gross profit increased 10.3% to $55.8 million in the reported quarter. Gross margin also expanded approximately 100 basis points to 76%.
Selling, general and administrative expenses rose 22% to $53.6 million. Research and development expenses totaled $35.2 million, up 31% year over year. Total operating expenses came in at $88.8 million, up 118% from that recorded in the prior-year period.
Glaukos had recorded a $30 million payment related to settlement of patent litigation with Ivantis in the year-ago quarter. The payment was reported as operating income. The company did not record any such payment in the first quarter of 2023.
Operating loss amounted to $33 million against a total operating income of $9.8 million in the year-ago period. Adjusted operating loss was $26.8 million, wider than the year-ago quarter’s loss of $13.6 million.
Glaukos Corporation Price, Consensus and EPS Surprise
Glaukos exited first-quarter 2023 with cash and cash equivalents and short-term investments of $325 million compared with $360 million at the end of the last reported quarter.
2023 Guidance Issued
The company updated its guidance for 2023 revenues. It now expects net sales in the range of $295-$300 million compared with the previous guidance of $290-$295 million.
Our Take
Glaukos exited the first quarter of 2023 with decent results, wherein both 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 new products including iPrime, iAccess and iStent, which are aiding its revenue growth. The company remains focused on delivering improved outcomes for patients suffering from chronic eye diseases. It does so by continuing to develop 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.
However, wider adjusted loss per share on a year-over-year basis is disappointing. GKOS’ operating loss in the reported quarter raised our apprehension. Its operation in a stiff competitive market is also worrying.
Zacks Rank and Stocks to Consider
Currently, Glaukos carries a Zacks Rank #4 (Sell).
Intuitive Surgical reported first-quarter 2023 adjusted earnings per share (EPS) of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Hologic reported first-quarter 2023 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 20.5%. Revenues of $1.03 billion outpaced the consensus mark by 6.2%.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.32%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.
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Glaukos' (GKOS) Q1 Earnings Beat Estimates, Sales Rise Y/Y
Glaukos Corporation (GKOS - Free Report) reported first-quarter 2023 adjusted loss of 59 cents per share, which was 3.3% narrower than the Zacks Consensus Estimate of a loss of 61 cents.The figure, however, was wider than the year-ago quarter’s reported adjusted loss of 38 cents per share.
GAAP loss per share was 72 cents against the prior-year quarter’s reported earnings of 11 cents per share.
Revenues in Detail
Glaukos registered revenues of $73.9 million in the first quarter, up 9% year over year on a reported basis and 11% at constant currency. The figure also surpassed the Zacks Consensus Estimate by 10.4%.
Quarter in Details
The company recorded net sales of $56.2 million and $17.7 million for Glaucoma and Corneal Health, respectively.
Margin Trend
Gross profit increased 10.3% to $55.8 million in the reported quarter. Gross margin also expanded approximately 100 basis points to 76%.
Selling, general and administrative expenses rose 22% to $53.6 million. Research and development expenses totaled $35.2 million, up 31% year over year. Total operating expenses came in at $88.8 million, up 118% from that recorded in the prior-year period.
Glaukos had recorded a $30 million payment related to settlement of patent litigation with Ivantis in the year-ago quarter. The payment was reported as operating income. The company did not record any such payment in the first quarter of 2023.
Operating loss amounted to $33 million against a total operating income of $9.8 million in the year-ago period. Adjusted operating loss was $26.8 million, wider than the year-ago quarter’s loss of $13.6 million.
Glaukos Corporation Price, Consensus and EPS Surprise
Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote
Financial Update
Glaukos exited first-quarter 2023 with cash and cash equivalents and short-term investments of $325 million compared with $360 million at the end of the last reported quarter.
2023 Guidance Issued
The company updated its guidance for 2023 revenues. It now expects net sales in the range of $295-$300 million compared with the previous guidance of $290-$295 million.
Our Take
Glaukos exited the first quarter of 2023 with decent results, wherein both 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 new products including iPrime, iAccess and iStent, which are aiding its revenue growth. The company remains focused on delivering improved outcomes for patients suffering from chronic eye diseases. It does so by continuing to develop 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.
However, wider adjusted loss per share on a year-over-year basis is disappointing. GKOS’ operating loss in the reported quarter raised our apprehension. Its operation in a stiff competitive market is also worrying.
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 their quarterly results are Intuitive Surgical (ISRG - Free Report) , Hologic (HOLX - Free Report) and Edwards Lifesciences (EW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical reported first-quarter 2023 adjusted earnings per share (EPS) of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Hologic reported first-quarter 2023 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 20.5%. Revenues of $1.03 billion outpaced the consensus mark by 6.2%.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.32%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.