Glaukos Corporation (GKOS - Free Report) posted second-quarter loss per share of 11 cents, wider than the Zacks Consensus Estimate of a loss of 10 cents. This compares to a loss per share of 15 cents a year ago.
The Zacks Rank #4 (Sell) company’s quarterly sales totaled $58.6 million, which beat the Zacks Consensus Estimate by 4.3%. On a year-over-year basis, revenues surged 35.8%.
Gross profit in the second quarter was $50.7 million, up 37.1% year over year. Gross margin quarter was 86.6% of net revenues, up 90 basis points on a year-over-year basis.
Operating expenses increased 38.1% to $57 million on a year-over-year basis driven by growth in domestic sales as well as higher marketing and administrative personnel and expenses. These apart, Glaukos’ expansion of global direct sales infrastructure and increased spending associated with pharmaceutical research and clinical trials drove operating expenses.
Glaukos now expects revenues within $226 million-$231 million, up from the previously stated $225-$230 million. The Zacks Consensus Estimate is pegged at $228.2 million, within the guided range.
Glaukos exited the second quarter on a tepid note. However, a raised guidance instils optimism in the stock. Also, the company is currently progressing with the U.S. commercial rollout of its next-generation iStent inject Trabecular Micro-Bypass device. For iDose Travoprost, Glaukos targets to file an FDA approval in the near future. Expansion in gross margin is a positive. Management is optimistic about the recent Avedro buyout.
On the flip side, surging operating expenses raise concern. Glaukos also faces cut-throat competition in the Medical Devices space. Further, an overtly stringent regulatory-approval process for the iDose platform is concerning.
Earnings of MedTech Majors at a Glance
A few top-ranked companies, which posted solid results this earnings season, are Stryker Corporation (SYK - Free Report) , Baxter International Inc. (BAX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered second-quarter 2019 adjusted earnings per share of $1.98, beating the Zacks Consensus Estimate by 2.6%. Its revenues of $3.65 billion surpassed the consensus estimate by 1.4%.
Baxter delivered second-quarter 2019 adjusted earnings per share of 89 cents, which surpassed the Zacks Consensus Estimate of 81 cents by 9.9%. Its revenues of $2.84 billion outpaced the consensus estimate of $2.79 billion by 1.9%.
Intuitive Surgical reported second-quarter 2019 adjusted earnings per share of $3.25, which beat the Zacks Consensus Estimate of $2.85. Its revenues of $1.1 billion surpassed the consensus mark of $1.03 billion.
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