Yahoo Finance Earnings Update: Here's Why Analysts Just Lifted Their Glaukos Corporation (NYSE:GKOS) Price Target To US$113
It's been a pretty great week for Glaukos Corporation (NYSE:GKOS) shareholders, with its shares surging 12% to US$108 in the week since its latest quarterly results. The results don't look great, especially considering that statutory losses grew 27% toUS$0.82 per share. Revenues of US$86m did beat expectations by 7.5%, but it looks like a bit of a cold comfort. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Glaukos
Following the latest results, Glaukos' 14 analysts are now forecasting revenues of US$362.7m in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$2.56. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$356.7m and losses of US$2.33 per share in 2024. So it's pretty clear the analysts have mixed opinions on Glaukos even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.
Although the analysts are now forecasting higher losses, the average price target rose 5.5% to 106.64615, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Glaukos analyst has a price target of US$125 per share, while the most pessimistic values it at US$100.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Glaukos' growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Glaukos to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Glaukos. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Glaukos analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Glaukos you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
