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Deciphera Pharmaceuticals, Inc. (DCPH) Up 4.3% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Deciphera Pharmaceuticals, Inc. (DCPH). Shares have added about 4.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Deciphera Pharmaceuticals, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Deciphera’s Q1 Loss Narrower-Than-Expected, Revenues Rise Y/Y

Deciphera reported first-quarter 2022 loss of 80 cents per share, narrower than the Zacks Consensus Estimate of a loss of 84 cents. In the year-ago quarter, the company had reported a loss of $1.06.

Total net revenues were $29.2 million in the quarter, which surpassed the Zacks Consensus Estimate of $27 million. Revenues rose 15.8% year over year.

Quarter in Detail

Qinlock net product revenues were $28.8 million, reflecting a sequential increase of 21.5%. Qinlock generated $23.4 million in sales in the United States and $5.4 million in sales in ex-U.S. markets.

Collaboration revenues of $0.4 million comprised commercial supply and royalty revenues under the company’s license agreement with Zai Lab.

Research and development expenses were $47.4 million, down 14.9% year over year, owing to lower costs related to clinical studies on Qinlock.

Selling, general and administrative expenses were $28.3 million, down 7.8% year over year, owing to a decrease in professional and consultant fees.

Deciphera had cash, cash equivalents and investments worth $275.4 million as of Mar 31, 2022, down from $327.6 million as of Dec 31, 2021.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Deciphera Pharmaceuticals, Inc. has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. 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, Deciphera Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Deciphera Pharmaceuticals, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Emergent Biosolutions (EBS), a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended March 2022 more than a month ago.

Emergent Biosolutions reported revenues of $307.5 million in the last reported quarter, representing a year-over-year change of -10.4%. EPS of $0.18 for the same period compares with $1.53 a year ago.

Emergent Biosolutions is expected to post earnings of $0.63 per share for the current quarter, representing a year-over-year change of +90.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Emergent Biosolutions. Also, the stock has a VGM Score of C.


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