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Why Is ChemoCentryx (CCXI) Up 1.8% Since Last Earnings Report?

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It has been about a month since the last earnings report for ChemoCentryx (CCXI - Free Report) . Shares have added about 1.8% in that time frame, underperforming 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.

ChemoCentryx Q4 Earnings and Sales Miss Estimates

ChemoCentryx reported fourth-quarter 2021 loss of 58 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents and the year-ago quarter loss of 43 cents.

It recorded revenues of $2.3 million, which missed the Zacks Consensus Estimate of $3 million and declined from $4.3 million in the year-ago quarter.

Quarter in Detail

Tavneos generated net product sales of approximately $1.0 million during the fourth quarter of 2021 from commercial sales in the country. Representing a 71% conversion rate from PSFs, 127 patient start forms (PSFs) have been received and 90 patients started treatment with the drug.

Research and development expenses were $18.8 million in the quarter compared with $21.2 million in the year-ago quarter.

Selling, general and administrative expenses increased to $23.3 million from $12.7 million due to higher employee-related expenses associated with commercialization planning efforts and the launch of Tavneos in the United States.

The company had $362.3 million in cash, cash equivalents and investments as of Dec 31, 2021.

2021 Results

Revenues came in at $32.2 million, down from $64.9 million in 2020.  Loss per share was $1.89 compared with a loss of 84 cents in 2020.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 47.13% due to these changes.

VGM Scores

At this time, ChemoCentryx has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 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 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.


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