Why Is Corcept (CORT) Up 4.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Corcept Therapeutics (CORT). Shares have added about 4.8% 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 its most recent earnings report in order to get a better handle on the important drivers.
Corcept Beats on Q2 Earnings, Ups 2023 Sales Guidance
Corceptreported second-quarter earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 15 cents. The bottom line also increased 4.2% on a year-over-year basis.
Revenues increased almost 14% year over year to $117.7 million. The figure beat the Zacks Consensus Estimate of $110 million. The top line mostly comprises of product sales of the Cushing’s syndrome drug, Korlym.
Quarter in Detail
Korlym revenues beat our model estimate of $109.5 million.
Research and development expenses totaled $43.3 million, up 31.8% from the year-ago quarter’s level.
Selling, general and administrative expenses increased 14.5% to $43.3 million, year over year.
Operating expenses amounted to $88.1 million, up 22.5% from that recorded in the prior-year quarter. This rise can be attributed to increased spending on clinical trials and sales and marketing activities to support the expansion of clinical developments.
Updated 2023 Guidance
The company raised its revenue guidance for 2023, reflecting growth for Korlym.
Corcept now expects total revenues in the range of $455-$470 million compared with the earlier guidance of $435-$455 million. The Zacks Consensus Estimate for the same is pegged at $443.17 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 20.24% 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Corcept has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report
