Local medical device companies last month posted fourth quarter results that exceeded analysts’ expectations.
Irvine’s Masimo Corp. (Nasdaq: MASI), which saw revenue increase 9% to $601 million, surpassed the average estimate of $593.4 million by eight analysts.
It’s the company’s first time reporting financial earnings under the leadership of new Chief Executive Katie Szyman after undergoing several leadership changes in 2024, including the resignation of founder and CEO Joe Kiani.
“I am extremely excited about the opportunity to lead such an innovative organization as we refocus on our core healthcare business,” Szyman said in a statement.
In the trading session after the announcement, Masimo shares increased 10% to $187.30 and a $10 billion market cap.
Glaukos Reports Record-Breaking Q4 Revenue
It was a record fourth quarter for Aliso Viejo-based Glaukos Corp. (NYSE: GKOS).
The maker of products to treat glaucoma reported revenue increased 28% to $105.5 million, driven largely by the company’s U.S. glaucoma sales which grew 45% to $56.3 million.
Much of that growth came from iDose TR sales, according to Chairman and CEO Thomas Burns.
It’s been over a year since the company launched iDose TR, a prescription implant that lowers eye pressure in patients with ocular hypertension and open-angle glaucoma.
Burns said that Glaukos last year accomplished several key objectives to support the future growth of iDose, including developing and implementing a training program for surgeons and getting iDose TR featured in now nine peer-reviewed journals as an alternative treatment for glaucoma and ocular hypertension.
“These results reflect the continued acceleration of our business, and capped off a successful year of global execution, both from a commercial and development perspective,” Burns said during the Feb. 20 earnings call.
Despite revenue topping analysts’ estimates, shares in Glaukos fell about 25% to $120.22 and a $6.8 billion market cap in the three trading sessions following the earnings announcement. The company reported adjusted loss of 40 cents per share while analysts were expecting a 38-cent loss.
Analysts noted that this loss, coupled with rising costs and expenses, raises some concerns, according to Zacks Investment Research Inc.
“Its operation in a stiff, competitive market is also worrisome,” the research firm said.
Glaukos announced its annual revenue forecast of $475 million and $485 million, which at the midpoint implies 25% growth. The shares are still up threefold since 2022.
Tarsus, RxSight Beat Estimates
Last year also marked the first full year of sales for Tarsus Pharmaceuticals Inc.’s eyedrop Xdemvy, the first Food and Drug Administration-approved treatment for Demodex blepharitis, an inflammation of the eyelids caused by mites.
Irvine-based Tarsus on Feb. 25 reported fourth quarter revenue jumped to $66.4 million for Xdemvy, more than a fivefold increase from the previous quarter (Nasdaq: TARS). It also reported a loss of 60 cents a share, lower than the 68-cent loss expected by analysts.
“2024 was a remarkable year for Tarsus by any metric,” CEO Bobak “Bobby” Azamian told analysts during the earnings call.
In the three trading sessions after the report, shares fell 4.4% to $43.55 and a $1.7 billion market cap. The shores are still up more than doubled since August.
Shares in RxSight Inc. (Nasdaq: RXST) fell 3.4% to $28.21 in the two trading sessions following the Aliso Viejo-based maker of intraocular (IOL), or implantable, lenses also reporting fourth quarter revenue increased 41% to $40.2 million in the fourth quarter, in which the company sold 29,069 Light Adjustable Lenses (LAL) and 83 Light Delivery Devices (LDD).
While revenue narrowly missed the consensus estimate of $40.4 million, RxSight posted adjusted earnings per share of 3 cents compared to a 17-cent loss expected by analysts.
RxSight reiterated its 2025 revenue guidance range of $185 million to $197 million, representing implied growth of 32% to 41%.
With about 1,500 of the approximately 10,000 U.S. cataract surgeons trained on RxSight’s technology, CEO Dr. Ron Kurtz said that he anticipates “a long runway for continued LDD placements in offices serving cataract patients.”
The Business Journal in January awarded Burns, Azamian and Kurtz as Businesspeople of the Year in the medtech space.
