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Why Is Kodiak Sciences Inc. (KOD) Up 88.3% 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 added about 88.3% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Kodiak Sciences Q1 Loss Widens, Eye Candidate in Focus

Kodiak Sciences reported first-quarter 2022 loss per share of $1.83, wider than the Zacks Consensus Estimate of a loss of $1.39. The company reported a loss of 98 cents per share in the year-ago quarter.

Kodiak Sciences currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues.

Quarter in Detail

Research and development expenses were $76.2 million in the quarter, up 89.1% year over year. The increase was driven by higher cost for clinical studies related to KSI-301.

General and administrative expenses were $19.6 million, up 92.1% on a year-over-year basis, driven by higher headcount and stock-based compensation expenses.

As of Mar 31, 2022, Kodiak Sciences had cash worth $671.7 million compared with $731.5 million as of Dec 31, 2021.

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 -13.4% due to these changes.

VGM Scores

At this time, Kodiak Sciences Inc. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Fate Therapeutics (FATE - Free Report) , has gained 13.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.

Fate Therapeutics reported revenues of $18.41 million in the last reported quarter, representing a year-over-year change of +65.3%. EPS of -$0.68 for the same period compares with -$0.48 a year ago.

For the current quarter, Fate Therapeutics is expected to post a loss of $0.86 per share, indicating a change of -48.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Fate Therapeutics. Also, the stock has a VGM Score of F.


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