Why Is Glaukos (GKOS) Up 1.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Glaukos (GKOS). Shares have added about 1.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Glaukos due for a pullback? 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 Loss Narrower Than Expected, '19 View Up

Glaukos Corporation 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 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.

Quarter Details

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.

Guidance Raised

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Glaukos has a subpar Growth Score of D, 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 lowest quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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