It has been about a month since the last earnings report for Glaukos (GKOS Quick QuoteGKOS - Free Report) . Shares have lost about 0.4% 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 the most recent earnings report in order to get a better handle on the important drivers.

Glaukos Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Glaukos 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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Glaukos has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Glaukos is part of the Zacks Medical - Instruments industry. Over the past month, Integra LifeSciences (IART Quick QuoteIART - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended September 2023 more than a month ago.

Integra reported revenues of $382.42 million in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $0.76 for the same period compares with $0.86 a year ago.

Integra is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of -4.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Integra. Also, the stock has a VGM Score of D.