Glaukos Corporation (GKOS - Free Report) reported first-quarter 2020 loss per share of 44 cents, wider than the Zacks Consensus Estimate of a loss of 35 cents. Notably, the company had delivered loss per share of 4 cents a year ago.
Revenues in Detail
Quarterly net sales totaled $55.3 million, which missed the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, revenues improved 2.4%. Per management, the upside can be attributed to contribution from the Avedro buyout. However, disruptions related to COVID-19 mainly offset the upside.
Gross profit in the first quarter was $22.8 million, down 51.4% year over year. Gross margin quarter was 41.2% of net revenues, down 4562 basis points on a year-over-year basis.
Operating expenses increased 54.4% to $75.4 million on a year-over-year basis, courtesy of higher selling, general and administrative, and research and development expenses.
The company exited the first quarter with cash and cash equivalents of $53.6 million, down from $62.4 million at the end of 2019.
During the first quarter, total current assets came in at $231.4 million compared with $262.9 million at the end of 2019.
Glaukos has withdrawn its previously announced (Feb 27, 2020) annual guidance for 2020 due to the uncertainties emanating from the COVID-19 pandemic.
Glaukos exited the first quarter on a dismal note.Nonetheless, the company witnessed another solid quarter, reflecting substantial growth at its global Glaucoma franchise, advancement in its market-expanding pipeline and execution of quite a few business development growth initiatives that includes the Avedro buyout.
However, surging operating expenses remain a concern. Glaukos also faces cut-throat competition in the Medical Devices space. The company witnessed a contraction in its gross margin in the quarter under review.
Zacks Rank and Key Picks
Glaukos currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Aphria Inc. (APHA - Free Report) , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
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