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Corcept (CORT) Up 18% Since Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Corcept Therapeutics Incorporated (CORT - Free Report) . Shares have added about 18% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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 Misses on Earnings and Revenue Estimates

Corcept’s adjusted fourth-quarter 2016 earnings (including stock-based compensation expense) of $0.04 per share, missing the Zacks Consensus Estimate by a penny.  The earnings were also in line with the company’s preliminary results.

Revenues increased 59.1% from the year-ago quarter figure to $23.8 million and were almost in line with the Zacks Consensus Estimate of $24 million.

Research and development expenses shot up 58.6% to $6.5 million (including stock-based compensation). Likewise, selling, general and administrative expenses were up 32.7% to $11.7 million. The increase in operating expenses was primarily due to greater compensation expense for the company's expanded sales force, increased sales volumes and  increased spending on development of CORT125134 and other selective cortisol modulators.

2016 Update

Earnings in 2016 were  $0.07 per share compared with a loss of $0.06 in 2015.

The revenue in 2016 revenue was $81.3 million, a 62% increase from 2015.

Guidance

The company increased its 2017 revenue guidance increased to a range of $120 million to  $130 million from its prior expectation of $115 million to125 million.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Corcept's stock has a strong Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% 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.

Our style scores indicate that the stock is more suitable for growth investors than momentum investors.

Outlook

The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.


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