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Why Is Kodiak Sciences Inc. (KOD) Down 26.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Kodiak Sciences Inc. (KOD - Free Report) . Shares have lost about 26.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kodiak Sciences Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Kodiak Sciences' Q4 Earnings Beat, Eye Candidate in Focus

Kodiak Sciences reported a fourth-quarter 2022 loss per share of $1.35, narrower than the Zacks Consensus Estimate of a loss of $1.58. The company reported a loss of $1.79 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 approximately $56 million in the reported quarter, down about 26% year over year. The decrease was driven by the maturation of the company’s tarcocimab clinical program and the timing of manufacturing activities.

General and administrative expenses were $18.1 million, up 3.6% on a year-over-year basis, driven by non-cash stock-based compensation expenses.

As of Dec 31, 2022, Kodiak Sciences had cash, cash equivalents and marketable securities worth $478.9 million compared with $537.4 million as of Sep 30, 2022.

2022 Result

For the full-year 2022, the company reported a net loss of $6.39 per share, which is wider than the last year’s $5.16 loss per share.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 23.66% due to these changes.

VGM Scores

Currently, Kodiak Sciences Inc. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 D. 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 this revision 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 - Free Report) , a stock from the same industry, has gained 9%. The company reported its results for the quarter ended December 2022 more than a month ago.

Geron reported revenues of $0.1 million in the last reported quarter, representing a year-over-year change of -90.4%. EPS of -$0.10 for the same period compares with -$0.10 a year ago.

For the current quarter, Geron is expected to post a loss of $0.09 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Geron has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.


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