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Corcept (CORT) Up 13.9% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Corcept Therapeutics (CORT - Free Report) . Shares have added about 13.9% in that time frame, outperforming the S&P 500.

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

Corcept Q3 Earnings In Line, Revenues Miss Estimates

The company reported adjusted third-quarter 2018 earnings of 22 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line improved from the year-ago period’s figure of 14 cents on higher revenues.

Revenues recorded in the quarter under review soared 51% from the prior-year quarter’s level to $64.4 million but missed the Zacks Consensus Estimate of $67 million.

Research and development expenses skyrocketed 61.3% to $18.9 million. Likewise, selling, general and administrative expenses surged 29.4% to $21.3 million.

Pipeline Update

Corcept’s lead compound for metabolic disorders, CORT118335, was well-tolerated in its phase I study. The company plans to open placebo-controlled, phase II trials in antipsychotic-induced weight gain and non-alcoholic steatohepatitis (NASH) in first quarter of 2019.

The phase III study of Corcept’s proprietary, selective cortisol modulator — relacorilant — is expected to enroll 130 patients at sites in the United States and Europe.

In June, Corcept announced positive data from a phase I/II analysis on relacorilant in combination with Celgene's Abraxane (nab-paclitaxel) to treat patients with solid tumors.By this year end, the company plans to begin a placebo-controlled, phase II study on relacorilant combined with Abraxane to treat metastatic ovarian cancer. The FDA granted relacorilant Orphan Drug status for pancreatic cancer.

The company is dosing patients in its phaseI/II study of CORT125281, a combined regime with Pfizer’s Xtandi, to treat patients suffering from metastatic castration-resistant prostate cancer.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Corcept has a nice Growth Score of B, though it is lagging a lot 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Corcept has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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