Kodiak Sciences Inc. (KOD) Up 43.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Kodiak Sciences Inc. (KOD). Shares have added about 43.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kodiak Sciences Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Kodiak Beats Q3 Earnings
Kodiak Sciences reported third-quarter 2023 loss per share of 95 cents, narrower than the Zacks Consensus Estimate of a loss of $1.41. The company had incurred a loss of $1.47 per share in the year-ago quarter.
Currently, KOD does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Quarter in Detail
Research and development expenses were approximately $36.2 million in the reported quarter, down about 41% year over year. The decrease was due to the reduction in expense during the pause of the tarcocimab development program and equity award forfeitures related to the 2021 Long-Term Performance Incentive Plan.
General and administrative expenses were $18.3 million, marginally up on a year-over-year basis, primarily due to lower non-cash stock-based compensation expenses.
As of Sep 30, 2023, Kodiak had cash, cash equivalents and marketable securities worth $345.7 million compared with $378.7 million as of Jun 30, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 23.24% due to these changes.
VGM Scores
At this time, Kodiak Sciences Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kodiak Sciences Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Kodiak Sciences Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Geron (GERN), a stock from the same industry, has gained 7.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
Geron reported revenues of $0.16 million in the last reported quarter, representing a year-over-year change of -46.7%. EPS of -$0.08 for the same period compares with -$0.10 a year ago.
Geron is expected to post a loss of $0.10 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Geron. Also, the stock has a VGM Score of F.
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Kodiak Sciences Inc. (KOD) : Free Stock Analysis Report
Geron Corporation (GERN) : Free Stock Analysis Report
