A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT Quick QuoteSRPT - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sarepta Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Q4 Earnings and Sales Beat Estimates

Sarepta reported a loss of $1.24 per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.28 per share. The loss was also narrower than the year-ago quarter’s loss of $1.42 per share.

The company reported an adjusted loss of 53 cents per share compared with an adjusted loss of 77 cents in the year-ago quarter. The adjusted figure excludes one-time items, depreciation and amortization expenses, interest expenses, income tax benefit, stock-based compensation expenses and other items.

Sarepta recorded total revenues of $258.4 million, up 28.3% year over year. Revenues beat the Zacks Consensus Estimate of $249.4 million. The year-over-year increase in revenues was driven by the sales of Sarepta’s three currently approved RNA-based PMO therapies for DMD,Exondys 51, Vyondys 53 and Amondys 45.

Quarter in Detail

The company derived product revenues of $235.9 million, up 32.0% year over year. The upside was driven by an increase in demand for its DMD products.

The company recorded $22.5 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management had recorded $22.7 million as collaboration revenues, which were also received from Roche.

Adjusted research and development (R&D) expenses totaled $186.8 million in the fourth quarter, up 6.4% year over year. This surge is attributable to the increase in manufacturing expenses for ramping up production for SRP-9001.

Adjusted selling, general & administrative (SG&A) expenses were $86.6 million, up 44.1% year over year.

2023 Guidance

The company expects to generate more than $925 million in product revenues from its three approved PMO therapies.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted -10% due to these changes.

VGM Scores

At this time, Sarepta Therapeutics has a great Growth Score of A, 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

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sarepta Therapeutics 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

Sarepta Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Exact Sciences (EXAS Quick QuoteEXAS - Free Report) , a stock from the same industry, has gained 7.5%. The company reported its results for the quarter ended December 2022 more than a month ago.

Exact Sciences reported revenues of $553 million in the last reported quarter, representing a year-over-year change of +16.7%. EPS of -$0.72 for the same period compares with -$1.28 a year ago.

Exact Sciences is expected to post a loss of $0.79 per share for the current quarter, representing a year-over-year change of +24%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.7%.

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