Please ensure Javascript is enabled for purposes of website accessibility

Glaukos Corp. Stock Notches Gains With Eye-Popping Results

By Cory Renauer - Mar 2, 2017 at 1:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Glaukos reported a banner year for its iStent glaucoma solution and gave investors plenty more to look forward to.

What happened

Shares of Glaukos Corp. (GKOS 4.65%) continued their impressive climb after the ophthalmic med-tech company reported fourth-quarter and full-year 2016 results yesterday. As of 11:23 a.m. EST Thursday, the stock had tacked on another 9.2% gain, bringing its year-to-date advance to about 44%.

So what 

The California-based pioneer of microinvasive glaucoma surgery has enjoyed steady success with its iStent Trabecular Micro-Bypass system for reduction of intraocular pressure. Fourth-quarter sales rose 64% over the prior-year period to $33.2 million, and total sales for the year bounded 60% higher last year over 2015 to $114.4 million.

Happy guy pointing upward with a rising chart behind him.

Image source: Getty Images.

The medical device arena is littered with the carcasses of failed start-ups that once boasted exciting technology that never turned a profit. This is why investors are just as thrilled by operating expenses that rose much slower than revenue. Wider margins allowed Glaukos to squeeze out a $4.2 million operating profit last year, after posting a $10.3 million loss in 2015. 

Now what

The good news doesn't end there. Glaukos expects sales to continue to climb this year to between $160 million and $165 million. With widening margins, the company should have little trouble achieving sustainable positive cash flows. 

Without about $103 million in working capital and no more long-term debt on its balance sheet, the company can direct that cash toward further expansion in international markets and next-generation technology.

Furthest along in Glaukos Corp.'s pipeline is another tiny device that accesses an alternate drainage site called the iStent Supra. It's currently in a pivotal trial that could lead to another glaucoma product launch before too long. Considering the company's recent success in this space, this is one stock you'll want to keep your eyes on going forward.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Glaukos Corporation Stock Quote
Glaukos Corporation
$47.26 (4.65%) $2.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.