Back to top

Image: Bigstock

Kodiak Sciences Inc. (KOD) Up 1% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

A month has gone by since the last earnings report for Kodiak Sciences Inc. (KOD - Free Report) . Shares have added about 1% 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 Sciences' Q3 Earnings Beat, Eye Candidate in Focus

Kodiak Sciences reported a third-quarter 2022 loss per share of $1.47, narrower than the Zacks Consensus Estimate of a loss of $1.82. The company reported a loss of $1.30 per share in the year-ago quarter.

The company currently 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 $61.7 million in the quarter, up 10.2% year over year. The increase was driven by higher non-cash stock-based compensation expenses.

General and administrative expenses were $17.8 million, up 54.7% on a year-over-year basis, driven by higher non-cash stock-based compensation expenses.

As of Sep 30, 2022, Kodiak Sciences had cash of $537.4 million compared with $597.9 million as of Jun 30, 2022.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 15.39% due to these changes.

VGM Scores

Currently, Kodiak Sciences Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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. It comes with little surprise Kodiak Sciences Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Kodiak Sciences Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Gilead Sciences (GILD - Free Report) , has gained 8.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.

Gilead reported revenues of $7.04 billion in the last reported quarter, representing a year-over-year change of -5.1%. EPS of $1.90 for the same period compares with $2.65 a year ago.

For the current quarter, Gilead is expected to post earnings of $1.50 per share, indicating a change of +117.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.

Gilead has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gilead Sciences, Inc. (GILD) - free report >>

Kodiak Sciences Inc. (KOD) - free report >>

Published in