Why Is Corcept (CORT) Up 25.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Corcept Therapeutics (CORT). Shares have added about 25.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corcept 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.
Corcept Misses on Q3 Earnings, Tightens 2020 Sales View
Corcept reported third-quarter 2020 earnings of 17 cents per share, missing the Zacks Consensus Estimate of 21 cents and also decreasing from the year ago quarter’s 22 cents.
Taking into account the impact of stock-based compensation and utilization of deferred tax assets, adjusted earnings came in at 24 cents per share in the reported quarter compared with 31 cents a year ago.
Revenues in the third quarter improved 6% year over year to $86.3 million, mostly owing to higher sales and a strong uptake of Corcept’s Cushing’s syndrome drug Korlym. However, sales missed the Zacks Consensus Estimate of $90 million and also declined sequentially.
Research and development expenses escalated 48.6% to $33.9 million. Selling, general and administrative expenses also increased 9.5% to $26.5 million.
2020 Guidance
Corcept tightened its full-year revenue guidance. The company now expects total revenues in the range of $355-$365 million compared with the earlier projection of $355-$375 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -16.67% due to these changes.
VGM Scores
At this time, Corcept has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Corcept has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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