On Tuesday, Piper Sandler reiterated its Overweight rating on shares of Glaukos Corporation (NYSE: NYSE:GKOS) with a steady price target of $140.00 after the company reported third-quarter results that surpassed top-line expectations. The strong performance was attributed primarily to the success of the iDose product, leading to an increase in the company's full-year guidance.
Glaukos announced its third-quarter earnings, showcasing a significant beat on revenue projections, which the company attributed to the better-than-expected performance of its iDose product. In response to the quarterly success, Glaukos has revised its full-year guidance upwards. Despite the positive results, the company has decided to maintain its fourth-quarter expectations, citing potential new competitive challenges in markets outside the United States (OUS).
The analyst from Piper Sandler encouraged investors to maintain a long-term perspective, emphasizing the substantial opportunity presented by iDose. The firm also highlighted the potential for Glaukos' Stent technology to continue gaining market share, both internationally and domestically.
Notably, the analyst pointed out that recent reimbursement changes by the Centers for Medicare & Medicaid Services (CMS) could disadvantage competitors, which could be beneficial for Glaukos.
In addition to the current product lineup, the robustness of Glaukos' pipeline was underscored, with the suggestion that the market has not fully appreciated the value of the company's future offerings beyond iDose. The analyst's commentary concluded with a bullish outlook on both iDose and the broader franchise, recommending that investors consider purchasing shares if the price dips on Wednesday.
In other recent news, Glaukos Corporation reported a 23.9% year-over-year growth in its third-quarter revenue, reaching $96.7 million, driven by strong sales from its iDose and iStent products. The company increased its full-year revenue guidance to between $377 million and $379 million. Glaukos' iDose product's revenue doubled from the previous quarter, reaching approximately $9 million, and analysts from Needham expect this upward trajectory to continue.
BTIG, Jefferies, and Truist Securities have all reiterated their Buy ratings on Glaukos, highlighting the potential growth of the iDose product. Glaukos also announced successful results from its second Phase 3 trial for Epioxa, a non-invasive drug therapy for keratoconus treatment, which demonstrated a significant improvement in corneal curvature.
Moreover, the company reported a 19% increase in second quarter consolidated net sales, leading to an upward revision of its full-year 2024 net sales guidance to between $370 and $376 million. Glaukos also announced the redemption of its outstanding 2.75% Convertible Senior Notes due 2027, with a principal amount of $57.5 million. These developments highlight the company's recent financial performance and strategic moves.
InvestingPro Insights
To complement Piper Sandler's optimistic outlook on Glaukos Corporation (NYSE: GKOS), recent data from InvestingPro offers additional context for investors. The company's market capitalization stands at $7.22 billion, reflecting the market's positive reception of its recent performance and future prospects.
Glaukos has demonstrated impressive revenue growth, with a 23.86% increase in the most recent quarter and an 18.7% rise over the last twelve months, reaching $360.35 million. This aligns with the analyst's observations about the success of the iDose product and the company's increased guidance.
InvestingPro Tips highlight that Glaukos has shown a "High return over the last year," with the stock price total return over the past year reaching an impressive 104.61%. This performance supports the analyst's recommendation to consider purchasing shares on potential dips.
It's worth noting that while Glaukos is experiencing strong growth, it is "Not profitable over the last twelve months," according to another InvestingPro Tip. This is reflected in the negative operating income of -$116.09 million for the last twelve months. However, the company's gross profit margin remains robust at 76.61%, indicating strong pricing power for its innovative products like iDose.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Glaukos, providing a deeper understanding of the company's financial health and market position.
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