Glaukos Corporation (NYSE:GKOS) Just Reported And Analysts Have Been Lifting Their Price Targets

Glaukos Corporation (NYSE:GKOS) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of US$96m beat expectations by a respectable 7.6%, although statutory losses per share increased. Glaukos lost US$1.06, which was 81% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Glaukos

Taking into account the latest results, the consensus forecast from Glaukos' 14 analysts is for revenues of US$373.8m in 2024. This reflects a solid 9.4% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 2.4% to US$2.82 per share. Before this earnings announcement, the analysts had been modelling revenues of US$363.0m and losses of US$2.54 per share in 2024. So it's pretty clear the analysts have mixed opinions on Glaukos even after this update; although they upped their revenue numbers, it came at the cost of a notable increase in per-share losses.

It will come as a surprise to learn that the consensus price target rose 8.2% to US$133, with the analysts clearly more interested in growing revenue, even as losses intensify. 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. Currently, the most bullish analyst values Glaukos at US$145 per share, while the most bearish prices it at US$115. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Glaukos' growth to accelerate, with the forecast 20% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Glaukos is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Glaukos analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Glaukos is showing 2 warning signs in our investment analysis , you should know about...

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com