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Deciphera Pharmaceuticals, Inc. (DCPH) Down 0.8% Since Last Earnings Report: Can It Rebound?

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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 0.8% 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 drivers.

Deciphera Q2 Loss Wider Than Expected, Revenues Beat

Deciphera reported second-quarter 2021 loss of $1.21 per share, wider than the Zacks Consensus Estimate of a loss of $1.15 and the year-ago quarter’s loss of $1.20. The loss was attributed to increased research and development expenses incurred during the quarter.

Total net revenues were $23.6 million in the quarter, which beat the Zacks Consensus Estimate of $22.3 million. Revenues were up 232% year over year.

Quarter in Detail

Total revenues in the second quarter comprised net product revenues and collaboration revenues. Net product revenues were $22 million, inclusive of $20.7 million in U.S. sales and $1.3 million in ex-U.S. sales.Collaboration revenues of $1.5 million comprised commercial supply and royalty revenues under the company’s license agreement with Zai Lab.

Research and development expenses were $60 million, up 30% year over year. The increase was attributed to personnel and preclinical costs as well as increased clinical costs on ongoing phase I/II study on vimseltinib.

Selling, general and administrative expenses were $32.8 million, up from $29.9 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 estimates review. The consensus estimate has shifted -9.66% due to these changes.

VGM Scores

Currently, 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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