Why Is Glaukos (GKOS) Up 2.3% Since Last Earnings Report?

A month has gone by since the last earnings report for Glaukos (GKOS). Shares have added about 2.3% 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 Q2 Loss Wider Than Estimates, '19 View Raised

Glaukos Corporation 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 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%.

Quarter Details

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.

Guidance Raised

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -21.89% due to these changes.

VGM Scores

Currently, Glaukos has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Glaukos has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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