Shattuck Labs, Inc. (NASDAQ:STTK) Earnings Report and Investigation Overview

• Shattuck Labs reported an EPS of -$0.33, surpassing the expected EPS of -$0.42, and a revenue of approximately $3 million, significantly above the forecast.
• The company faces an investigation by Pomerantz LLP for potential securities fraud following the discontinuation of its lead experimental therapy, SL-172154.
• Despite a recent drop in stock price, Shattuck Labs maintains a price-to-sales ratio of approximately 10.75 and a low debt-to-equity ratio of 0.028.

On November 14, 2024, Shattuck Labs, Inc. (NASDAQ:STTK) reported its earnings, showing an earnings per share (EPS) of -$0.33, which was better than the expected EPS of -$0.42. The company also reported a revenue of about $3 million, significantly exceeding the estimated revenue of $166,670. Despite these positive surprises, the company faces challenges.

Pomerantz LLP is investigating Shattuck Labs for potential securities fraud or other unlawful practices. This investigation follows the company's October 1, 2024, announcement to discontinue its lead experimental therapy, SL-172154. The decision came after interim Phase 1 data showed no improvement in median overall survival for patients with myeloid leukemia and myelodysplastic syndromes.

Following the announcement, Shattuck's stock price dropped by $1.50. Despite this, the company maintains a price-to-sales ratio of approximately 10.75, indicating that investors are willing to pay over ten times the company's sales per share. The enterprise value to sales ratio is about 4.36, suggesting a relatively lower valuation when considering the company's total value.

Shattuck Labs has a low debt-to-equity ratio of 0.028, reflecting minimal reliance on debt financing. The current ratio is high at 7.96, indicating strong liquidity and the ability to cover short-term liabilities with short-term assets. However, the negative P/E ratio of -0.99 and negative earnings yield of -1.01% highlight the company's current lack of profitability.

The enterprise value to operating cash flow ratio is negative at -0.45, suggesting challenges in generating positive cash flow from operations. Investors are encouraged to contact Danielle Peyton at Pomerantz LLP for more information about joining the class action.