Glaukos-GKOS Stock Falls Despite Q4 Earnings & Revenue Beat, Margins Decline

Core Insights - Glaukos Corporation reported a narrower adjusted loss of 40 cents per share for Q4 2024, better than the Zacks Consensus Estimate of a 43 cents loss and improved from a 63 cents loss in the same quarter last year [1] - The company achieved revenues of $105.5 million in Q4 2024, reflecting a 28.1% year-over-year increase and surpassing the Zacks Consensus Estimate by 4.7% [2] Revenue Details - Net sales for Glaucoma reached$ 84.1 million, marking a 39% year-over-year increase, while sales in Corneal Health remained stable [3] Margin Analysis - Gross profit rose by 21.1% year-over-year to $76.9 million, with an adjusted gross margin of 82%, down from 84% in the previous year [4] - Selling, general, and administrative expenses increased by 9.5% year-over-year to$ 69 million, while research and development expenses decreased by 1.4% to $36.5 million [4] Financial Update - Glaukos ended Q4 2024 with cash and cash equivalents and short-term investments totaling$ 324 million, up from $267.2 million at the end of Q3 2024 [6] 2025 Guidance - The company expects 2025 revenues to be between$ 475 million and $485 million, significantly higher than the previous guidance of$ 370 million to $376 million, with a loss per share estimate of$ 1.08, indicating a 42.8% improvement year-over-year [7] Operational Highlights - The glaucoma franchise's revenue growth was driven by the iStent portfolio and increasing contributions from iDose TR, with plans to enhance market access for iDose TR in 2025 [9] - Glaukos is advancing its product pipeline, including an NDA submission for Epioxa, with expected approval by the end of 2025, and is conducting a phase 2b/3 clinical trial for iDose TREX [10][11] Market Performance - Following the Q4 results, shares of Glaukos fell by 13.6% in after-market trading, although the stock has gained 6.1% year-to-date, contrasting with a 0.1% decline in the industry [12]