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Why Is Deciphera Pharmaceuticals, Inc. (DCPH) Down 10.8% Since Last Earnings Report?

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It has been about a month since the last earnings report for Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) . Shares have lost about 10.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Deciphera Pharmaceuticals, Inc. due for a breakout? 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 catalysts.

Deciphera Q1 Loss Narrower Than Expected, Revenues Beat

Deciphera reported a loss of $1.06 per share for first-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $1.08 and the year-ago quarter’s loss of $1.36.

Total net revenues were $25.1 million for the quarter, which beat the Zacks Consensus Estimate of $23 million. Total revenues included $20 million of revenues from Qinlock and $5.2 million of collaboration revenues. Sales of Qinlock in the United States were $19.3 million and ex-U.S. sales of Qinlock were $0.7 million.

Quarter in Detail

Research and development expenses were $55.7 million, up from $51.4 million primarily due to personnel and preclinical costs in the year-ago quarter.

Selling, general and administrative expenses were $30.7 million, up from $23.9 million in the year-ago quarter due to personnel costs as well as external spend related to professional fees, including those associated with establishing a targeted commercial infrastructure in key European markets to support a potential launch of Qinlock in Europe, if approved.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -20.42% due to these changes.

VGM Scores

At this time, Deciphera Pharmaceuticals, Inc. has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Deciphera Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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