A month has gone by since the last earnings report for Corcept Therapeutics (CORT). Shares have added about 8.2% 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 catalysts.
Corcept Q1 Earnings Top Estimates, Revenues Rise Y/Y
Corcept reported first-quarter 2020 earnings of 25 cents per share, surpassing the Zacks Consensus Estimate of 21 cents and also improving from the year ago quarter’s 15 cents.
Taking into account the impact of stock-based compensation and utilization of deferred tax assets, adjusted earnings came in at 34 cents per share compared with 20 cents in the year-ago quarter.
Revenues in the reported quarter surged 44% from the prior-year period to $93.2 million, primarily backed by higher sales and the strong uptake of Korlym. Sales also beat the Zacks Consensus Estimate of $87 million.
Research and development expenses increased 29.2% to $26.1 million. Selling, general and administrative expenses also escalated 13.1% to $27.5 million.
Corcept expects total revenues in the range of $355-375 million.
Corcept’s lead candidate relacorilant is being evaluated in the phase III GRACE study to treat Cushing’s syndrome. Dosing is currently underway in the above-mentioned study at sites across the United States, Israel and Europe. The company plans to submit a new drug application for relacorilant in the second quarter of 2022.
Corcept plans to start a phase III study, GRADIENT, on relacorilant in the second quarter of 2020 in patients whose Cushing’s syndrome is caused by adrenal adenoma.
Corcept’s phase II study on relacorilant plus Celgene's (now part of Bristol Myers) Abraxane to treat metastatic ovarian cancer is actively enrolling patients at sites in the United States and Europe, and is on track to produce results in first-half 2021.
Corcept plans to start the phase III study of relacorilant plus Abraxane to treat patients with metastatic pancreatic cancer in second-quarter 2020.
The company also expects to begin a phase Ib study on relacorilant plus Merck’s Keytruda to treat patients with metastatic or unresectable adrenal cancer in the third quarter of 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
At this time, Corcept has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
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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