A month has gone by since the last earnings report for Deciphera Pharmaceuticals, Inc. . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Deciphera Pharmaceuticals, Inc. 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 catalysts.

Deciphera Q3 Earnings & Sales Beat Estimates

Deciphera Pharmaceuticals, Inc. reported third-quarter 2023 loss of 58 cents per share, narrower than the Zacks Consensus Estimate of a loss of 60 cents. In the year-ago quarter, DCPH had incurred a loss of 55 cents per share.

Net revenues were $43.3 million, which beat the Zacks Consensus Estimate of $40 million. The figure rose almost 20.4% year over year.

Quarter in Detail

Total revenues comprise net product revenues and collaboration revenues for Qinlock (ripretinib). 

Deciphera’s sole marketed drug, Qinlock, was approved by the FDA in 2020 to treat adult patients with advanced GIST, who received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec (imatinib). Qinlock was approved in Europe in late 2021. Apart from Qinlock, there is no marketed drug in the company’s portfolio.

Net product revenues from Qinlock sales were $41.8 million, up 29% year over year. The drug generated sales of $32.7 million and $9.1 million in the United States and ex-U.S. markets, respectively. 

Qinlock’s net product revenues beat the Zacks Consensus Estimate of $38.5 million and our model estimate of $37.8 million. 

Collaboration revenues totaled $1.5 million, down 59% year-over-year which beat the Zacks Consensus Estimate of $1.33 million but missed our model estimate of $1.6 million.

Research and development expenses (including stock-based compensation) amounted to $62.5 million, up 31.6% year over year, owing to costs related to clinical studies on DCC-3116 and Qinlock.

Selling, general and administrative expenses (including stock-based compensation) totaled $33.3 million, up 11% year over year, owing to increased professional fees, personnel-related costs and consultant fees.

Deciphera had cash, cash equivalents and investments worth $376.9 million as of Sep 30, 2023, compared with $389.4 million as of Jun 30, 2023. The company expects its current cash balance, together with the anticipated product, royalty and supply revenues, excluding any potential future milestone payments under its collaboration or license agreements, to fund its operating and capital expenditures into 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Deciphera Pharmaceuticals, Inc. has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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.

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.

Performance of an Industry Player

Deciphera Pharmaceuticals, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Blueprint Medicines (BPMC Quick QuoteBPMC - Free Report) , has gained 16.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Blueprint Medicines reported revenues of $56.57 million in the last reported quarter, representing a year-over-year change of -14.3%. EPS of -$2.20 for the same period compares with -$2.23 a year ago.

For the current quarter, Blueprint Medicines is expected to post a loss of $2.02 per share, indicating a change of +23.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Blueprint Medicines. Also, the stock has a VGM Score of F.