Corcept (CORT) Up 24.5% Since Last Earnings Report: Can This Continue?

It’s been a month since Corcept Therapeutics (CORT) last reported earnings. Shares have risen about 24.5% in that time, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or should Corcept pull out? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the company’s most recent earnings report in order to better understand the important catalysts.

Corcept’s first-quarter earnings and revenues beat estimates

Corcept reported first-quarter 2024 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 21 cents. In the same quarter last year, the company reported earnings per share of 14 cents.

Revenue increased 39% year-over-year to $146.8 million. The figure surpassed the Zacks Consensus Estimate of $138 million. Revenues include only sales of Korlym, a drug for Cushing’s syndrome.

Quarter in detail

Korlym’s revenue exceeded our model’s estimate of $129.8 million.

Research and development expenses increased 43% year over year to $58.5 million.

Selling, general and administrative expenses increased approximately 15.8% year-over-year to $56.3 million.

Operating expenses increased to $117.3 million, an increase of 29.2% from the prior-year level, due to higher expenses to support ongoing clinical trials.

Cash and investments as of March 31, 2024 were $451 million compared to $425.4 million as of December 31, 2023.

Guidelines 2024

Corcept increased its revenue forecasts for 2024.

The company now expects total revenue in the range of $620 million to $650 million, compared to its prior forecast of $600 million to $630 million.

How have estimates changed since then?

It turns out that new estimates have been trending upwards over the past month.

VGM results

At this point, Corcept has a solid Growth Score of B, although well behind its Momentum Score of D. Following the exact same trajectory, the stock was rated a D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has a Total VGM Score of C. If you’re not focused on one strategy, this score should interest you.

Perspectives

Estimates for this company generally show an upward trend, and the scale of these revisions indicates a downward shift. Notably, Corcept carries a Zacks Rank #3 (Hold). We expect a linear rate of return on the stock over the next few months.

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