Glaukos (GKOS) Q4 Earnings and Revenues Surpass Estimates

Glaukos Corporation GKOS reported fourth-quarter loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents. Notably, the company had delivered earnings per share of 8 cents a year ago.

For the full-year 2019, the company reported loss per share of 10 cents, narrower than the year-ago quarter’s loss of 29 cents per share.

Revenues in Detail

The Zacks Rank #3 (Hold) company’s quarterly net sales totaled $65.9 million, which beat the Zacks Consensus Estimate by 4.4%. On a year-over-year basis, revenues improved 21.8%. Per management, the upside can be attributed to Glaucoma unit volume increases worldwide and contribution from the Avedro buyout.

For the full-year 2019, the company reported net sales of $236.9 million, up 30.7% from that of 2018.

Glaukos Corporation Price, Consensus and EPS Surprise

 

Glaukos Corporation Price, Consensus and EPS Surprise

Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote

Quarter Details

Gross profit in the fourth quarter was $49.9 million, up 6.4% year over year. Gross margin quarter was 75.8% of net revenues, down 1100 basis points on a year-over-year basis.

Operating expenses increased 76.7% to $79.6 million on a year-over-year basis courtesy of higher selling, general and administrative, and research and development expenses.

Financial Update

As of Dec 31, 2019, cash and cash equivalents came in at $62.4 million, which increased significantly from the year-ago quarter.

During the fourth quarter, total assets came in at $818.4 million compared with $206.9 million in the year-ago quarter.

2020 Guidance

Glaukos expects revenues in the range of $290-$300 million. The Zacks Consensus Estimate is pegged at $316 million.

Our Take

Glaukos exited the fourth quarter on a strong note. Strong revenue outlook for 2020 instills optimism in the stock. The company witnessed another solid quarter that marked the end of a transformative year of 2019, 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 buyout of Avedro.

Meanwhile, surging operating expenses remain a concern. Glaukos also faces cut-throat competition in the Medical Devices space. The company also witnessed a contraction in its gross margin in the quarter under review.

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks that reported solid results this earning season are Stryker Corporation SYK, Accuray Incorporated ARAY and IDEXX Laboratories, Inc. IDXX. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker delivered fourth-quarter 2019 adjusted EPS of $2.49, outpacing the Zacks Consensus Estimate by 1.2%. Fourth-quarter reported revenues of $4.13 billion surpassed the Zacks Consensus Estimate by 0.7%. The company carries a Zacks Rank #2 (Buy).

Accuray reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of a penny, beating the Zacks Consensus Estimate of a loss of 7 cents. Net revenues of $98.8 million outpaced the Zacks Consensus Estimate by 0.3%. The company sports a Zacks Rank #1.

IDEXX Laboratories reported fourth-quarter 2019 adjusted EPS of $1.04, which beat the Zacks Consensus Estimate of 91 cents by 14.3%. Revenues were $605.4 million, surpassing the Zacks Consensus Estimate by 0.9%. The company carries a Zacks Rank of 2.

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