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Corcept Therapeutics Incorporated (NASDAQ:CORT): Poised For Long Term Success?

Simply Wall St

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Looking at Corcept Therapeutics Incorporated's (NASDAQ:CORT) earnings update in March 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 37% next year, though this is noticeably lower than the historical 5-year average earnings growth of 75%. By 2020, we can expect Corcept Therapeutics’s bottom line to reach US$104m, a jump from the current trailing-twelve-month of US$75m. Below is a brief commentary on the longer term outlook the market has for Corcept Therapeutics. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Corcept Therapeutics

What can we expect from Corcept Therapeutics in the longer term?

The view from 4 analysts over the next three years is one of negative sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of CORT's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NasdaqCM:CORT Past and Future Earnings, June 19th 2019

From the current net income level of US$75m and the final forecast of US$40m by 2022, the annual rate of growth for CORT’s earnings is -13%. This leads to an EPS of $0.31 in the final year of projections relative to the current EPS of $0.65. Contraction in the bottom line seems to suggest cost outpacing top line growth of 0.05% over the next few years. With this high cost growth, margins is expected to contract from 30% to 16% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Corcept Therapeutics, I've compiled three essential factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Corcept Therapeutics worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Corcept Therapeutics is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Corcept Therapeutics? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.