Glaukos Reports 30% Boost In Glaucoma Sales, Improved Margins In Q3, Analyst Highlights Certain Headwinds

Financial Performance - Third-quarter sales reached $96.7 million, a 24% year-over-year increase, surpassing the consensus estimate of$ 91.49 million [1] - Adjusted EPS loss improved to $(0.28) from$ (0.50) year-over-year, beating the consensus estimate of $(0.48) [1] - Gross margin for Q3 2024 was approximately 77%, up from 76% in the same period in 2023 [1] - Non-GAAP gross margin for Q3 2024 was approximately 82%, slightly down from 83% in the same period in 2023 [2] Product Segment Performance - Glaucoma products recorded net sales of$ 76.0 million, a 30% year-over-year increase [2] - Corneal Health net sales reached $20.6 million, a 5% year-over-year increase [2] Management Commentary - The company attributed its record third-quarter results to successful global execution of key strategic plans and strong business momentum [2] Guidance and Market Reaction - The company raised its 2024 net sales guidance to$ 377 million- $379 million, up from prior guidance of$ 370 million- $376 million and above the consensus estimate of$ 373.758 million [3] - Despite strong results, the stock declined 9% in after-hours trading, partly due to a modest $3 million increase in the high-end guidance [3] - The stock was down 1.16% at$ 129.83 at publication time [4] Industry and Competitive Landscape - The company anticipates peak headwinds from the Medicaid Drug Rebate Program (MDRP) in Q4 2024 [3] - Increasing competition in the international glaucoma segment is expected, aligning with prior management guidance [3] - Competitive pressures may ease with upcoming key product approvals, which are set to expand the company's international pipeline in the coming quarters [4]