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What's in Store for Corcept (CORT) This Earnings Season?

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Corcept Therapeutics Incorporated CORT is scheduled to report fourth-quarter 2019 and full-year results on Feb 20, after the market closes.

Corcept boasts an excellent earnings surprise history, surpassing expectations in each of the trailing four quarters, the average being 20.02%. In the last reported quarter, the company delivered a positive surprise of 15.79%.

Shares of Corcept have rallied 13.1% in the past year against the industry’s decrease of 4%.

Factors to Consider

Corcept’s top line mainly comprises revenues from its only marketed product Korlym, which is approved for treating Cushing’s syndrome. The drug has been a consistent revenue driver for the company since its approval. Sale of Korlym has been rising with a solid year-over-year and sequential increase as was reported in the third quarter of 2019, a trend that most likely continued in the soon-to-be-reported quarter as well.

On Jan 30, the company released preliminary results of Korlym. Preliminary revenues of $87.9 million for the fourth quarter indicate an increase of 32% from the prior-year reported figure. For the full year, the company reported preliminary revenues of $306.5 million, suggesting a surge of 22% from the number reported in 2018.

Meanwhile, in the last reported quarter, management stated that revenues are rising as more physicians are prescribing Korlym to patients, a trend that most likely continued in the December quarter as well.

Key Developments

Notably, Corcept’s lead candidate relacorilant is being evaluated in the phase III GRACE study to treat Cushing’s syndrome. Dosing is currently ongoing in the above-mentioned study at sites across the United States, Canada and Europe. Corcept plans to commence a placebo-controlled study of relacorilant in the first quarter of 2020 in patients whose Cushing’s syndrome is caused by adrenal adenoma. We expect management to provide a detailed update on the same at the upcoming investors’ conference.

Other candidates in the company’s pipeline are also making good progress. Successful development of these candidates will further boost the company’s growth.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Corcept this season. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here.

Earnings ESP: Corcept has an Earnings ESP of +6.38%, representing the difference between the Most Accurate Estimate of 25 cents and the Zacks Consensus Estimate of 24 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Corcept currently has a Zacks Rank #4 (Sell).

2020 Guidance

Last month, in addition to preliminary results for 2019, Corcept issued its financial guidance for 2020.

For the full year, Corcept expects revenues in the range of $355-$375 million.

Corcept Therapeutics Incorporated Price and EPS Surprise

Stocks That Warrant a Look

Here are a few healthcare stocks worth considering as our model shows that these have the right mix of elements to beat estimates this time around.

Clovis Oncology, Inc. CLVS has an Earnings ESP of +0.81% and a Zacks Rank #2. The company is scheduled to release earnings results on Feb 24.

Sage Therapeutics, Inc. SAGE has an Earnings ESP of +2.74% and a Zacks Rank #3. The company is scheduled to release earnings results on Feb 27.

Immunomedics, Inc. has an Earnings ESP of +3.37% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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