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Why Is Viking Therapeutics (VKTX) Down 29.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for Viking Therapeutics, Inc. (VKTX - Free Report) . Shares have lost about 29.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Viking Therapeutics 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.

Narrower-Than-Expected Q3 Loss, Nil Sales

Viking reported a third-quarter 2024 loss per share of 22 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 23 cents per share in the year-ago quarter.

As the company lacks any marketed product in its portfolio, it did not record any revenues during the quarter.

Quarter in Detail

Research and development expenses totaled $22.8 million, up 24% year over year. The uptick was mainly due to increased manufacturing expenses for the company’s drug candidates, along with higher employee-related costs.

General and administrative expenses amounted to $13.8 million, up 55% year over year, primarily due to higher employee-related expenses, legal fees and services provided by third-party consultants.

As of Sept. 30, 2024, Viking Therapeutics had cash, cash equivalents and short-term investments worth $930 million compared with $942 million as of June 30, 2024

How Have Estimates Been Moving Since Then?

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

VGM Scores

Currently, Viking Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, 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 trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Viking Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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