CYTOKINETICS Reports USD 0.9 Million Revenue and USD -128.6 Million Net Income in Q2 FY2023
August 15, 2023
🌥️Earnings Overview
For the second quarter of its fiscal year ending June 30, 2023, CYTOKINETICS ($NASDAQ:CYTK) reported total revenue of USD 0.9 million and a net income of USD -128.6 million, a decrease of 99.0% from its net income of USD -19.8 million in the same quarter the previous year.
Stock Price
The stock opened at $31.0 and closed at $31.7, marking a 2.0% increase from the previous closing price of 31.1. The company’s bottom line was significantly impacted by increased operating expenses and research and development costs. In spite of the losses, investors remain optimistic about the company’s long-term prospects and the potential for growth in the upcoming quarters.
Furthermore, analysts have projected that the company’s revenue for FY2023 will exceed USD 3 million, potentially representing a significant increase from the reported figure of USD 0.9 million in the second quarter. Overall, CYTOKINETICS‘ performance in the second quarter of FY2023 did not meet investors’ expectations but the stock still managed to close at $31.7 on Thursday, indicating that market sentiment remains favorable towards the company and its outlook. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cytokinetics. CYTOKINETICS_Reports_USD_0.9_Million_Revenue_and_USD_-128.6_Million_Net_Income_in_Q2_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 9.95 | -539.62 | -5198.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cytokinetics. CYTOKINETICS_Reports_USD_0.9_Million_Revenue_and_USD_-128.6_Million_Net_Income_in_Q2_FY2023″>More…
| Operations | Investing | Financing |
| -426.32 | -15.5 | 417.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cytokinetics. CYTOKINETICS_Reports_USD_0.9_Million_Revenue_and_USD_-128.6_Million_Net_Income_in_Q2_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 779.9 | 1.11k | -3.48 |
Key Ratios Snapshot
Some of the financial key ratios for Cytokinetics are shown below. CYTOKINETICS_Reports_USD_0.9_Million_Revenue_and_USD_-128.6_Million_Net_Income_in_Q2_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -18.9% | – | -4832.9% |
| FCF Margin | ROE | ROA |
| -4390.8% | 107.0% | -38.5% |
Analysis
After evaluating CYTOKINETICS using our Star Chart, our team concluded that CYTOKINETICS is an ‘elephant’ type of company, which means that it has a large amount of assets after deducting off liabilities. This type of company may be attractive to investors looking for a strong balance sheet as well as those looking for solid returns through dividends. However, CYTOKINETICS has a low health score of 2/10 due to its cashflows and debts, meaning that it is less likely to sustain future operations in times of crisis. We also found that CYTOKINETICS was strong in asset levels, but weak in dividend, growth, and profitability. Thus, investors looking for high dividends, growth, and/or profitability may not find CYTOKINETICS to be an attractive opportunity. More…
Peers
The company’s main competitors are Rubius Therapeutics Inc, XSpray Pharma AB, and Proteo Inc.
– Rubius Therapeutics Inc ($NASDAQ:RUBY)
Rubius Therapeutics Inc is a clinical-stage biopharmaceutical company focused on the development of a new class of therapeutics called Red Cell Therapeutics (RCTs). RCTs are living medicines that are derived from red blood cells and have the potential to treat a wide range of diseases with a single administration. The company’s lead product candidate, RTX-134, is in development for the treatment of severe combined immunodeficiency (SCID), a rare and potentially fatal genetic disease. Rubius has completed a Phase 1/2 clinical trial of RTX-134 in SCID patients and is preparing for a Phase 3 clinical trial.
Rubius has a market capitalization of $31.69 million and a negative return on equity of 105.38%. The company’s lead product candidate, RTX-134, is in development for the treatment of severe combined immunodeficiency (SCID), a rare and potentially fatal genetic disease. Rubius has completed a Phase 1/2 clinical trial of RTX-134 in SCID patients and is preparing for a Phase 3 clinical trial.
– XSpray Pharma AB ($LTS:0GHZ)
Spray Pharma AB is a pharmaceutical company with a market cap of 1.28B as of 2022. The company has a Return on Equity of -12.71%. Spray Pharma AB focuses on the development and commercialization of drugs for the treatment of rare diseases.
Summary
Investors may be hesitant to invest in CYTOKINETICS after the company reported a total revenue of only 0.9 million USD and a net income of -128.6 million USD for the second quarter of its FY2023. This is a decrease of 99% year over year from the previous net income, which was -19.8 million USD. This could indicate that the company has been struggling and may be a risky investment.
However, investors should consider conducting further research to determine whether the stock is a viable investment opportunity. They should analyze the company’s financial situation, competitive landscape and growth potential before investing.
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