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Corcept Therapeutics (CORT) Up 6.6% Since Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Corcept Therapeutics Incorporated (CORT - Free Report) . Shares have added about 6.6% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is CORT 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.

Corcept's Earnings and Sales Beat Estimates in Q1

Corcept’s adjusted first-quarter 2018 earnings of 19 cents per share beat the Zacks Consensus Estimate by a penny. The reported figure improved from the year-ago adjusted earnings of 6 cents.

Revenues increased 109% from the year-ago quarter  to $57.7 million and beat the Zacks Consensus Estimate of $56 million.

Research and development expenses improved 124.2% to $1.5 million. Likewise, selling, general and administrative expenses were up 70.4% to $3.5 million. In fact, the increase in operating expenses can be attributed to higher spending on the development of relacorilant, CORT118335 and CORT125281 and costs arising from increased sales volume.

Pipeline Update

The company completed enrollment in phase II study of relacorilant to treat patients with Cushing’s syndrome and full datais  expected in third quarter of 2018.

Relacorilant generated encouraging early data as a potential treatment for solid tumors.  The company will present data from the dose-finding portion of its Phase !/II study of relacorilant combined with Abraxane at the ASCO annual meeting in June 2018. 

The company is enrolling patients in its dose- ranging study of CORT125281 in combination with Xtandi to treat metastatic castration-resistant prostate cancer at sites in the United States and Europe.

The company’s lead compound for metabolic disorders, CORT118335, continues to progress in its phase I study. The company is planning for phase II studies in patients with antipsychotic-induced weight gain and non-alcoholic steatohepatitis by end of 2018.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.

VGM Scores

At this time, CORT has a strong Growth Score of A, though it is lagging a lot on the momentum front with a D. The stock was also 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.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

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




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