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ChemoCentryx (CCXI) Up 10.5% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for ChemoCentryx (CCXI). Shares have added about 10.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ChemoCentryx 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 catalysts.

ChemoCentryx Q2 Loss Wider Than Expected, Sales Down

ChemoCentryx reported second-quarter 2021 loss of 56 cents per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. The company reported earnings of 29 cents per share in the year-ago period.

It recorded revenues of $1.8 million, which missed the Zacks Consensus Estimate of $5 million and decreased from $49.4 million in the year-ago quarter.

Quarter in Detail

Collaboration and license revenues from related parties were $1.7 million for the reported quarter compared with $49.3 million in the year-ago period.

The company recorded grant revenues of $0.1 million for the quarter.

Research & development (R&D) expenses were $20.8 million, up from $18.8 million in the year-ago quarter, primarily attributable to the manufacture of commercial drug supply in anticipation of the launch of avacopan for the treatment of ANCA vasculitis. R&D expenses also increased due to higher research and drug discovery expenses, including those associated with the development of CCX559, its orally-available small molecule checkpoint (PD-1/PD-L1) inhibitor.

ChemoCentryx’s lead drug candidate, avacopan (CCX168) successfully completed a pivotal phase III study in ANCA-associated vasculitis or AAV and is in late-stage clinical development for the treatment of severe Hidradenitis Suppurativa and C3 glomerulopathy. A new drug application on avacopan is under review in the United States.

General and administrative expenses were $19.7 million, up from $10.3 million in the year-ago quarter.

The company had $402.6 million in cash, cash equivalents and investments as of Jun 30, 2021.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 5.7% due to these changes.

VGM Scores

At this time, ChemoCentryx has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ChemoCentryx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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