Source : investing, 5/11/2024, Tuesday
On Tuesday, Piper Sandler reaffirmed its “higher weight” rating for Glucos Corporation (NYSE: GKOS) shares while maintaining its price target at $140.00 after the company reported third-quarter results that exceeded expectations in terms of revenue. This strong performance was mainly attributed to the success of the iDose product, which led to the company raising its forecast for the full fiscal year.
Glucos reported third-quarter earnings, showing a significant outperformance in revenue expectations, which the company attributed to the better-than-expected performance of its iDose product. In response to the quarter’s success, Glucos revised its full-year forecast higher. Despite the positive results, the company decided to maintain its fourth-quarter forecast, citing potential new competitive challenges in markets outside the U.S.
The analyst from Piper Sandler encouraged investors to maintain a long-term outlook, emphasizing the great opportunity presented by iDose. The company also highlighted the potential for Glucos Stent technology to continue to gain market share, both internationally and domestically.
Notably, the analyst noted that recent changes in compensation by Medicare and Medicaid Service Centers (CMS) may hurt competitors.
which could be beneficial for Glucos.
In addition to the current product range, the strength of the Glucos product line was emphasized.
noting that the market did not fully appreciate the value of the company’s future offerings after iDose. The analyst’s comment concluded with a positive outlook on both iDose and the broader franchise.
recommending investors consider buying shares if the price falls on Wednesday.
In other recent news, Glucos Corporation reported 23.9% year-on-year growth in third-quarter revenue to $96.7 million, driven by strong sales of iDose and iStent products.
The company raised its full-year revenue forecast to between $377 million and $379 million. Glucos’ iDose revenue doubled from the previous quarter, reaching around $9 million.
and Needham analysts expect this upward trend to continue.
BTIG, Jefferies and Truist Securities have all confirmed their “buy” ratings for Glucos, highlighting the potential for iDose product growth. Glucos also announced successful results from its Phase III II clinical trial of Epioxa, a non-surgical drug treatment for keratoconus.
which showed significant improvement in corneal curvature.
Furthermore, the company reported a 19% increase in consolidated net sales for the second quarter, revising its entire 2024 net sales forecast upwards to between $370 million and $376 million. GLOCOS also announced the redemption of its major convertible bonds of 2.75% due in 2027, for an amount of $57.5 million. These developments highlight the company’s recent financial performance and strategic moves.
To complement Piper Sandler’s optimistic outlook on Glucos Corporation (NYSE: GKOS), recent data from InvestingPro provides additional context for investors. The company’s market capitalization is $7.22 billion, reflecting a positive market reception of its recent performance and future prospects.
Glucos showed impressive revenue growth, with an increase of 23.86% in the fourth quarter and a rise of 18.7% over the past twelve months, to $360.35 million. This is in line with analyst feedback on iDose product success and increased company forecasts.
InvestingPro’s advice highlights that Glucos has shown “a high return over the past year,” with the total return on share price over the past year reaching an impressive 104.61%. This performance is supported by the analyst’s recommendation to consider buying stocks when potential declines occur.
It’s worth noting that while Glucos is experiencing strong growth.
it is “unprofitable over the past twelve months,” according to another tip from InvestingPro. This is reflected in negative operating income of -$116.09 million for the past twelve months. However, the company’s gross profit margin remains strong at 76.61%, indicating pricing strength for its innovative products such as iDose.
For investors seeking a more thorough analysis, InvestingPro offers 12 additional Glucos tips.
providing a deeper understanding of the company’s financial health and market position.
