Glaukos Corporation (GKOS - Free Report) posted third-quarter loss per share of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents. This compares to a loss per share of 19 cents a year ago.
The Zacks Rank #3 (Hold) company’s quarterly sales totaled $58.5 million, which beat the Zacks Consensus Estimate by 3.5%. On a year-over-year basis, revenues surged 33.3%. Per management, the upside was led by unit volume increases worldwide.
Gross profit in the third quarter was $50.8 million, up 34.1% year over year. Gross margin quarter was 86.8% of net revenues, up 50 basis points on a year-over-year basis.
Operating expenses increased 41% to $63.2 million on a year-over-year basis driven by growth in domestic sales as well as higher marketing, administrative and personnel expenses. Apart from these factors, Glaukos’ expansion of global direct sales infrastructure and increased spending associated with pharmaceutical research and clinical trials drove operating expenses.
Glaukos now expects revenues in the range of $229 million-$232 million, up from the previous expectation of $226-$231 million. The Zacks Consensus Estimate is pegged at $229.9 million, within the guidance.
Glaukos exited the third quarter on a strong note. Raised revenue guidance for 2019 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 intends to file for 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 are a concern. Glaukos also faces cut-throat competition in the Medical Devices space. Further, an overtly stringent regulatory-approval process for the iDose platform is a headwind.
Earnings of Other MedTech Majors at a Glance
Some better-ranked companies, which posted solid results this earnings season, are Edwards Lifesciences (EW - Free Report) , Thermo Fisher Scientific Inc (TMO - Free Report) and ResMed Inc (RMD - Free Report) . Each stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences delivered third-quarter 2019 adjusted earnings per share (EPS) of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the consensus mark by 2.1%. Revenues of $6.27 billion outpaced the same by 1.3%.
ResMed reported fiscal first-quarter 2020 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.
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