A month has gone by since the last earnings report for Corcept Therapeutics (CORT). Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Corcept due for a breakout? 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 Misses on Q1 Earnings, Revises 2023 Sales Guidance
Corcept reported first-quarter 2023 earnings of 14 cents per share, which missed the Zacks Consensus Estimate and our model estimates of 20 cents. The bottom line also declined 30% on a year-over-year basis.
Revenues increased 13% year over year to $105.7 million. The figure beat the Zacks Consensus Estimate and our model estimates of $104 million and $100.4 million, respectively. The top line mostly comprises of product sales of Korlym, the Cushing’s syndrome drug.
Quarter in Detail
Research and development expenses totaled $40.8 million, up 45% from the year-ago quarter’s level.
Selling, general and administrative expenses increased 29% to $48.5 million year over year.
Operating expenses amounted to $90.8 million, up 36% from that recorded in the prior-year quarter. The 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 Korlym’s growth.
Corcept now expects total revenues in the range of $435-$455 million compared with the earlier guidance of $430-$450 million. The Zacks Consensus Estimate for the same is pegged at $433.21 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -30.94% due to these changes.
At this time, Corcept has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Corcept has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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