Why Is Deciphera Pharmaceuticals, Inc. (DCPH) Up 20.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Deciphera Pharmaceuticals, Inc. (DCPH). Shares have added about 20.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 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 the most recent earnings report in order to get a better handle on the important drivers.
Deciphera Q4 Loss Narrower Than Expected, Revenues Beat
Deciphera Pharmaceuticals, Inc. reported fourth-quarter 2023 loss of 54 cents per share, narrower than the Zacks Consensus Estimate of a loss of 58 cents. In the year-ago quarter, DCPH had incurred a loss of 60 cents per share.
Net revenues were $48.3 million, which beat the Zacks Consensus Estimate of $46 million. The figure rose almost 33% year over year.
Quarter in Detail
Total revenues comprise net product and collaboration revenues for Qinlock (ripretinib).
Net product revenues from Qinlock sales were $46.7 million, up 41.9% year over year. The drug generated sales of $35.3 million and $11.4 million in the United States and ex-U.S. markets, respectively.
Qinlock’s net product revenues beat the Zacks Consensus Estimate of $44.7 million and our model estimate of $46 million.
Collaboration revenues totaled $1.6 million, down 52.9% year over year, beating the Zacks Consensus Estimate of $1.24 million as well as our model estimate of $1 million.
Research and development expenses (including stock-based compensation) amounted to $58.6 million, up 21.8% year over year, owing to costs related to clinical studies on DCC-3116, vimseltinib and Qinlock.
Selling, general and administrative expenses (including stock-based compensation) totaled $39.1 million, up 21.4% year over year, owing to increased professional fees, personnel-related costs and consultant fees.
Deciphera had cash, cash equivalents and investments worth $352.9 million as of Dec 31, 2023, compared with $376.9 million as of Sep 30, 2023. The company expects its current cash balance, together with the anticipated product, royalty and supply revenues, excluding any potential future milestone payments under its collaboration or license agreements, to fund its operating and capital expenditures into the second half of 2026.
Full-Year 2023 Results
For 2023, Deciphera generated total revenues of $163.4 million compared with $134 million recorded in 2022, witnessing year-over-year growth of 21.9%. The figure beat the Zacks Consensus Estimate of $161.2 million.
For the full year, the company reported a loss of $2.29 per share compared with a net loss of $2.37 per share in 2022. The net loss per share recorded in 2023 is narrower than the Zacks Consensus Estimate of a loss of $2.33 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Deciphera Pharmaceuticals, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest 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
Deciphera Pharmaceuticals, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Deciphera Pharmaceuticals, Inc. (DCPH) : Free Stock Analysis Report
