What does VKTX's flat EPS in 2024 suggest for future quarters?

Viking Therapeutics' (VKTX) flat EPS in 2024 suggests that the company's financial performance may not significantly improve in the immediate future quarters. Here's an analysis based on the available data:

1. **Lack of Revenue Contribution from Product Sales**: VKTX currently lacks a marketed drug, which means it does not contribute to revenue through product sales. This is a common characteristic of clinical-stage biopharmaceutical companies that are focused on drug development rather than commercial operations.
2. **High Research and Development Expenses**: VKTX's R&D expenses have been increasing, reaching $63.8 million in 2023. These expenses are likely to continue due to the company's ongoing clinical trials and product development activities, which may lead to a flattening of EPS if the increase in expenses is not offset by other factors.
3. **General and Administrative Expenses on the Rise**: G&A expenses also rose to $37.0 million in 2023. These costs, along with R&D expenses, contribute to the company's overall expense base and can impact EPS.
4. **Future Outlook**: VKTX has announced plans to initiate Phase III trials for VK2735 in the second quarter of 2025. These trials, along with other ongoing projects, are expected to continue driving expenses, which may keep EPS flat in the near term.

In conclusion, the flat EPS in 2024 indicates that VKTX is heavily investing in its pipeline and may not see significant improvements in profitability in the upcoming quarters due to the nature of its business and the ongoing expenses associated with drug development. However, the company's strategic advances and significant strides in developing treatments for metabolic and endocrine disorders could potentially lead to breakthroughs that positively impact financial performance in the longer term.