Why Is Kodiak Sciences Down 26.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Kodiak Sciences Inc. KOD. Shares have lost about 26.2% 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 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 Q1 Loss Narrower Than Expected, Pipeline in Focus

Kodiakreported first-quarter 2024 loss per share of 82 cents, narrower than the Zacks Consensus Estimate of a loss of $1.09. The company had incurred a loss of $1.35 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 $29.9 million in the reported quarter, down 47% year over year. The decrease was mainly due to the reduction in expenses owing to the conclusion of some clinical studies on its lead pipeline candidate, tarcocimab.

General and administrative expenses were $16.1 million, down 11% on a year-over-year basis, primarily due to lower non-cash stock-based compensation expenses.

As of Mar 31, 2024, Kodiak had cash, cash equivalents and marketable securities worth $245.9 million compared with $285.5 million as of Dec 31, 2023. The company believes that its current cash balance is enough to support its present and planned operations into 2026.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 15.48% due to these changes.

VGM Scores

At this time, Kodiak Sciences 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 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Halozyme Therapeutics HALO, has gained 9.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.

Halozyme Therapeutics reported revenues of $195.88 million in the last reported quarter, representing a year-over-year change of +20.8%. EPS of $0.79 for the same period compares with $0.47 a year ago.

Halozyme Therapeutics is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of +5.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.5%.

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

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