Dj Glaukos Files 8K - Regulation Fd >Gkos

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Index Details

The fund is sponsored by Invesco. It has amassed assets over $202.03 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PSCH seeks to match the performance of the S&P SmallCap 600 Capped Health Care Index before fees and expenses.

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Costs

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Sector Exposure and Top Holdings

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This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.

Looking at individual holdings, Glaukos Corp (GKOS) accounts for about 4.87% of total assets, followed by Inspire Medical Systems Inc (INSP) and Merit Medical Systems Inc (MMSI).

The top 10 holdings account for about 34.76% of total assets under management.

Performance and Risk

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Bottom Line

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Zacks Investment Research

Glaukos Corp reported on Monday third-quarter sales of $96.7 million, up 24% year-over-year, beating the consensus of $91.49 million.

The eye-focused company reported an adjusted EPS loss of $(0.28), down from a loss of $(0.50), beating the consensus of $(0.48).

The gross margin for the third quarter of 2024 was approximately 77%, compared to approximately 76% in the same period in 2023.

Non-GAAP gross margin for the third quarter of 2024 was approximately 82%, compared to approximately 83% in the same period in 2023.

Glaucoma products recorded net sales of $76.0 million, up 30% year-over-year. Corneal Health net sales reached $20.6 million, increased 5% year-over-year.

"Our record third-quarter results reflect successful global execution of our key strategic plans and continued strong momentum in our business," said Thomas Burns, chairman and CEO.

Guidance: Glaukos expects 2024 net sales of $377 million to $379 million, compared to a consensus of $373.758 million and prior guidance of $370 million-$376 million.

William Blair wrote, “We believe part of the stock move down following results — indicated down 9% in the after-hours market despite another strong quarter, though the best performance to date in our coverage up 65% — was a result of the increase of only $3 million on the high end.”

The analyst highlighted the company anticipates peak headwinds from the Medicaid Drug Rebate Program (MDRP) in the fourth quarter, along with increasing competition in its international glaucoma segment, aligning with prior management guidance.

Additionally, William Blair projects that these competitive pressures could ease with upcoming key product approvals, set to expand the company’s international pipeline in the coming quarters.

GKOS Price Action: Glaukos Corp. stock is down 1.16% at $129.83 at publication Tuesday.

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Glaukos (GKOS) reported $96.67 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 23.9%. EPS of -$0.28 for the same period compares to -$0.50 a year ago.

The reported revenue represents a surprise of +5.86% over the Zacks Consensus Estimate of $91.32 million. With the consensus EPS estimate being -$0.52, the EPS surprise was +46.15%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Glaukos performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenues- Glaucoma- United States: $51.57 million versus $47.06 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +35.5% change.
• Revenues- Corneal Health- United States: $18.45 million versus the five-analyst average estimate of $17.98 million. The reported number represents a year-over-year change of +6.4%.
• Revenues- International: $26.65 million versus $25.93 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +17.7% change.
• Revenues- Corneal Health- International: $2.19 million versus $2.50 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.8% change.
• Revenues- United States: $70.02 million compared to the $65.04 million average estimate based on five analysts. The reported number represents a change of +26.4% year over year.
• Revenues- Glaucoma- International: $24.47 million compared to the $23.42 million average estimate based on five analysts. The reported number represents a change of +20.7% year over year.
• Revenues- Corneal Health: $20.64 million compared to the $20.40 million average estimate based on six analysts. The reported number represents a change of +4.7% year over year.
• Revenues- Glaucoma: $76.03 million compared to the $71.18 million average estimate based on six analysts. The reported number represents a change of +30.3% year over year.

View all Key Company Metrics for Glaukos here>>>

Shares of Glaukos have returned +3.9% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Zacks Investment Research

Glaukos Corporation GKOS reported third-quarter 2024 adjusted loss of 28 cents per share, surpassing the Zacks Consensus Estimate by 46.15%. The figure was narrower than the year-ago quarter’s adjusted loss of 50 cents per share.

The GAAP loss per share was 39 cents compared with the prior-year quarter’s reported loss of 63 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Revenue Details

Glaukos registered revenues of $96.7 million in the third quarter, up 23.9% year over year on a reported basis as well as at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 5.9%.

Quarter in Detail

The company recorded net sales of $76 million and $20.6 million for Glaucoma and Corneal Health, respectively, up 30% and 5% year over year.

Glaukos Corporation Price, Consensus and EPS Surprise

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

Margin Analysis

Gross profit increased 24.4% year over year to $74.1 million. However, the adjusted gross margin was 82.4% compared with 83.4% in the year-ago period.

Selling, general and administrative expenses rose 17.9% year over year to $64 million. Research and development expenses totaled $34.7 million, up 4.3% year over year. Total operating expenses were $98.7 million, up 12.8% from that recorded in the prior-year period.

The operating loss declined to $24.7 million from $28 million in the year-ago period. The adjusted operating loss was $18.4 million, narrower than the year-ago quarter’s reported loss of $21.8 million.

Financial Update

Glaukos exited the third quarter of 2024 with cash and cash equivalents and short-term investments of $267.2 million compared with $266.4 million at the end of second-quarter fiscal 2024.

2024 Guidance

The company revised its guidance for 2024 revenues. It now expects net sales in the range of $377-$379 million compared with the previous guidance of $370-$376 million. The Zacks Consensus Estimate for the same is pegged at $373.9 million.

Our Take

Glaukos' exited the third quarter of 2024 with better-than-expected results wherein earnings and revenues surpassed their respective consensus estimates, while revenues beat the same. Management remains excited regarding the company’s continued top-line growth in the reported quarter.

During the third quarter, GKOS’ glaucoma franchise witnessed revenue growth, driven by its iStent portfolio, coupled with growing contributions from iDose TR. The company reported the successful execution of detailed launch plans for iDose TR during the third quarter. The unique permanent J-code for iDose TR became effective on July 1. This is likely to increase patient access, driving sales growth in the upcoming quarters. Per management, during the reported quarter, five of the seven Medicare Administrative Contractors issued final local coverage determinations for microinvasive glaucoma surgery that will establish coverage for iStent infinite.

GKOS continues to invest in its product pipeline. It targets NDA submission for its corneal cross-linking therapy, Epioxa, by the end of 2024. Per the third-quarter earnings call, management announced positive topline outcomes in the second Phase 3 pivotal study for Epioxa, and the therapy met the study's primary efficacy endpoint. The company also remains on track to commence a phase 3 clinical trial for its next-generation iDose therapy, iDose TREX, by the end of 2024.

However, GKOS’ operating loss in the reported quarter amid rising costs and expenses raised our apprehension. Its operation in a stiff, competitive market is also worrisome.

Shares of GKOS lost 9% during after-market trading following the third-quarter results. However, the company’s shares have gained 65.3% year to date compared with the industry’s rise of 4.7%. The broader S&P 500 Index has increased 20.1% in the same time frame.

GKOS’s Zacks Rank & Stocks to Consider

GKOS carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are AngioDynamics ANGO, Quest Diagnostics DGX and RadNet RDNT. While AngioDynamics sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 42% compared with the industry's 14.9% growth year to date.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.

RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.

Zacks Investment Research