A month has gone by since the last earnings report for ChemoCentryx (CCXI). Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ChemoCentryx 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.
ChemoCentryxQ2 Earnings Beat Estimates, Sales Up Y/Y
ChemoCentryx reported second-quarter 2022 loss of 44 cents per share, narrower than the Zacks Consensus Estimate of a loss of 51 cents and the year-ago quarter’s loss of 56 cents.
Total revenues were recorded at $12 million, missing the Zacks Consensus Estimate of $13 million and increasing from $2 million in the year-ago quarter.
Quarter in Detail
Tavneos generated net product sales of $9.1 million during the second quarter of 2022 entirely from its commercial sales in the United States. In the year-ago quarter, ChemoCentryx did not record any revenues from product sales.
Collaboration revenues recorded during the quarter were $1.8 million compared with $1.7 million in the year-ago quarter. The increase was related to the Avacopan Agreements and the CCX140 Agreement.
Research and development expenses were $14.4 million in the quarter compared with $20.9 million in the year-ago quarter. This decline was on account of a reduction in clinical expenses on completing the phase IIb TAVNEOS AURORA study evaluating Tavneos for the hidradenitis suppurativa (HS) indication.
Selling, general and administrative expenses increased to $28.2 million from $19.7 million due to higher employee-related expenses associated with commercialization planning efforts and the launch of Tavneos in the United States.
ChemoCentryx had $329 million in cash, cash equivalents and investments as of Jun 30, 2022.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 8.36% due to these changes.
At this time, ChemoCentryx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 C. 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. Notably, ChemoCentryx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ChemoCentryx is part of the Zacks Medical - Drugs industry. Over the past month, Aerie Pharmaceuticals (AERI), a stock from the same industry, has gained 34.6%. The company reported its results for the quarter ended June 2022 more than a month ago.
Aerie reported revenues of $33.31 million in the last reported quarter, representing a year-over-year change of +22.5%. EPS of -$0.32 for the same period compares with -$0.67 a year ago.
Aerie is expected to post a loss of $0.43 per share for the current quarter, representing a year-over-year change of +40.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
Aerie has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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