Why did KALA's Q3 2023 earnings shock the market?

KALA's Q3 2023 earnings shocked the market due to several significant factors:

1. **Significant Loss Per Share**: KALA reported a loss of $3.41 per share in Q3 2023, which is a substantial figure considering the market's expectations. This significant loss per share can lead to a negative shock in the market as it indicates the company is not profitable at the moment.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|KALA|KALA.O|KALA BIO|2022 Q4|0||186|
|KALA|KALA.O|KALA BIO|2023 Q1||-6.99|186|
|KALA|KALA.O|KALA BIO|2023 Q2||-4.36|186|
|KALA|KALA.O|KALA BIO|2023 Q3||-3.41|186|

2. **Revenue Decline**: The company's total revenue for the quarter was not disclosed, which further adds to the market's uncertainty. The lack of revenue growth, combined with the high loss per share, contributes to the negative shock.
3. **Earnings Surprise**: The EPS surprise for KALA in Q3 2023 was -1.26, which indicates that the actual EPS was significantly lower than the market's expectations. This negative surprise can lead to a decline in investor confidence and a negative reaction in the stock price.

|code|Ticker|Name|Date|Estimate EPS YoY|Estimate Revenue YoY|market_code|
|---|---|---|---|---|---|---|
|KALA|KALA.O|KALA BIO|20221231|-1497.5609756097563|-100|186|
|KALA|KALA.O|KALA BIO|20230331|-1155.5555555555554|-100|186|
|KALA|KALA.O|KALA BIO|20230630|-641.8604651162791||186|
|KALA|KALA.O|KALA BIO|20230930|-120|-98.00815934725222|186|

In conclusion, KALA's Q3 2023 earnings shocked the market due to a combination of a significant loss per share, lack of revenue growth, and a negative earnings surprise. These factors together create a bleak financial picture for the company, leading to market shock.