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Why Is Corcept (CORT) Up 38.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Corcept Therapeutics (CORT - Free Report) . Shares have added about 38.4% 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 drivers.

Corcept Q2 Earnings Top Estimates, Revenues Miss Mark

Corcept reported second-quarter 2020 earnings of 23 cents per share, surpassing the Zacks Consensus Estimate of 20 cents and also improving from the year ago quarter’s 17 cents.

Taking into account the impact of stock-based compensation and utilization of deferred tax assets, adjusted earnings came in at 32 cents per share compared with 25 cents in the year-ago quarter.

Revenues in the reported quarter improved 23% from the prior-year period to $88.6 million, primarily backed by higher sales and a strong uptake of Korlym. However, sales missed the Zacks Consensus Estimate of $90 million and were also down sequentially.

Research and development expenses escalated 22.7% to $26.5 million. Selling, general and administrative expenses also increased 4.1% to $25.6 million.

2020 Guidance

Corcept expects total revenues in the range of $355-375 million.

Pipeline Update

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.

Meanwhile, enrollment is underway in the phase III study, GRADIENT, on relacorilant in patients whose Cushing’s syndrome is caused by adrenal adenoma.

Corcept completed enrollment in a phase II study on relacorilant plus Celgene's (now part of Bristol Myers) Abraxane (nab-paclitaxel) to treat metastatic ovarian cancer and is on track to produce results in first-half 2021.

Meanwhile, Corcept enrolled the first patient in the phase III RELIANT study, evaluating relacorilant in combination with Abraxane for the treatment of patients with metastatic pancreatic cancer.

Corcept also expects to begin a phase Ib study on relacorilant plus Merck’s Keytruda (pembrolizumab) in the third quarter of 2020 to treat patients with metastatic or unresectable adrenal cancer.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 12.82% due to these changes.

VGM Scores

At this time, Corcept has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. 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 A. 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. 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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