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Kodiak Sciences Inc. (KOD) Down 19.9% Since Last Earnings Report: Can It Rebound?

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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 19.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Kodiak Q2 Earnings Miss, New Lead Candidate in Focus 

Kodiak Sciences reported second-quarter 2023 loss per share of $1.53, wider than the Zacks Consensus Estimate of a loss of $1.23. The company had incurred a loss of $1.74 per share in the year-ago quarter.

Currently, the company does not have any approved products in its portfolio. As a result, it has yet to generate revenues.

Quarter in Detail

Research and development expenses were approximately $67 million in the reported quarter, down about 9% year over year. The decrease was due to the maturation of the company’s tarcocimab clinical program and the timing of manufacturing activities.

General and administrative expenses were $17.9 million, marginally down on a year-over-year basis, primarily due to lower non-cash stock-based compensation expenses.

As of Jun 30, 2023, Kodiak Sciences had cash, cash equivalents and marketable securities worth $378.7 million compared with $421.2 million as of Mar 31, 2023.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -26.8% due to these changes.

VGM Scores

Currently, Kodiak Sciences Inc. has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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, Ultragenyx (RARE - Free Report) , a stock from the same industry, has gained 7.9%. The company reported its results for the quarter ended June 2023 more than a month ago.

Ultragenyx reported revenues of $108.31 million in the last reported quarter, representing a year-over-year change of +21.2%. EPS of -$2.25 for the same period compares with -$2.26 a year ago.

Ultragenyx is expected to post a loss of $2.05 per share for the current quarter, representing a year-over-year change of +15.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.

Ultragenyx 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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