Why Is Kodiak Sciences Inc. Up 62.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Kodiak Sciences Inc. (NASDAQ: KOD). Shares have added about 62.9% 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 the most recent earnings report in order to get a better handle on the important drivers.

Kodiak's Q1 Earnings Miss, Pipeline in Focus, Stock Up

Kodiak Sciences reported first-quarter 2023 loss per share of $1.35, wider than the Zacks Consensus Estimate of a loss of $1.28. The company reported a loss of $1.83 per share in the year-ago quarter.

The company currently does not have any approved products in its portfolio. As a result, it is yet to generate revenues.

Kodiak expects to file a single BLA for tarcocimab in the four major retinal vascular disease indications.

Quarter in Detail

Research and development expenses were approximately $56.5 million in the reported quarter, down about 26% 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 $18.1 million, down about 8% on a year-over-year basis, primarily due to lower non-cash stock-based compensation expenses.

As of Mar 31, 2023, Kodiak Sciences had cash, cash equivalents and marketable securities worth $421.2 million compared with $478.9 million as of Dec 31, 2023.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -12.78% due to these changes.

VGM Scores

Currently, Kodiak Sciences Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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, Bluebird Bio (NASDAQ: BLUE), has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.

Bluebird reported revenues of $2.38 million in the last reported quarter, representing a year-over-year change of +22.1%. EPS of $0.21 for the same period compares with -$1.66 a year ago.

For the current quarter, Bluebird is expected to post a loss of $0.75 per share, indicating a change of +41.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.

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

Image by Yiorgos Ntrahas on Unsplash