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Why Is Kodiak Sciences Inc. (KOD) Down 23.8% 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 23.8% 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 Sciences Q2 Earnings Beat, Eye Candidate in Focus

Kodiak Sciences reported a second-quarter 2022 loss per share of $1.74, narrower than the Zacks Consensus Estimate of a loss of $1.77. The company had reported a loss of $1.08 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 $73.7 million in the quarter, up 62.3% year over year. The increase was driven by the higher costs of ongoing clinical studies.

General and administrative expenses were $18.3 million, up 74.3% on a year-over-year basis, driven by higher stock-based compensation expenses.

As of Jun 30, 2022, Kodiak Sciences had cash of $597.9 million compared with $671.7 million as of Mar 31, 2022.

How Have Estimates Been Moving Since Then?

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

VGM Scores

Currently, Kodiak Sciences Inc. has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, 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, Reata Pharmaceuticals, Inc. , has gained 25.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.

Reata Pharmaceuticals, Inc. reported revenues of $0.76 million in the last reported quarter, representing a year-over-year change of -65.8%. EPS of -$2.02 for the same period compares with -$2 a year ago.

For the current quarter, Reata Pharmaceuticals, Inc. is expected to post a loss of $2.35 per share, indicating a change of -19.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.

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


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