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Sarepta Therapeutics (SRPT) Up 12.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sarepta Therapeutics 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.
Q2 Earnings Beat, Sales Miss Estimates
Sarepta reported a loss of 27 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.89.
However, the loss included depreciation and amortization expenses, stock-based compensation expenses and one-time gains from the sale of priority review voucher. The adjusted loss for the quarter was 85 cents per share, narrower than the year-ago period’s adjusted loss of $1.18 per share.
Sarepta recorded total revenues of $261.2 million, up 12% year over year. The year-over-year increase in revenues was driven by sales of Sarepta’s three currently-approved RNA-based PMO therapies for DMD. The reported revenues missed the Zacks Consensus Estimate of $264.5 million.
Quarter in Detail
The company’s product revenues were up 13% year over year at $239.0 million, entirely derived from the sale of the above three DMD drugs. The upside was driven by an increase in demand for DMD products. The reported product sales beat our model estimates of $235 million.
The company recorded $22.3 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management had recorded $22.0 million as collaboration revenues, which were also received from Roche.
During the quarter, Sarepta did not generate any revenues from Elevidys.
Adjusted research and development (R&D) expenses totaled $212.2 million in the second quarter, down 8% year over year. This downside is attributable to a decline in manufacturing expenses incurred during the quarter, partially offset by an increase in clinical study expenses.
Adjusted selling, general & administrative (SG&A) expenses were $90.3 million, up 42% year over year. The upside was driven primarily by an increase in professional service expenses incurred by the company for Elevidys’ launch.
2023 Guidance
Sarepta reiterated its previously issued product revenue guidance for the three approved PMO drugs, which are expected to generate more than $925 million in 2023. Management did not issue a guidance on Elevidys sales stating that it will continue to evaluate the gene-therapy’s demand to provide accurate guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 10.64% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 looks promising. 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, Vertex Pharmaceuticals (VRTX - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended June 2023 more than a month ago.
Vertex reported revenues of $2.49 billion in the last reported quarter, representing a year-over-year change of +13.5%. EPS of $3.89 for the same period compares with $3.60 a year ago.
For the current quarter, Vertex is expected to post earnings of $3.93 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.8% over the last 30 days.
Vertex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Sarepta Therapeutics (SRPT) Up 12.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sarepta Therapeutics 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.
Q2 Earnings Beat, Sales Miss Estimates
Sarepta reported a loss of 27 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.89.
However, the loss included depreciation and amortization expenses, stock-based compensation expenses and one-time gains from the sale of priority review voucher. The adjusted loss for the quarter was 85 cents per share, narrower than the year-ago period’s adjusted loss of $1.18 per share.
Sarepta recorded total revenues of $261.2 million, up 12% year over year. The year-over-year increase in revenues was driven by sales of Sarepta’s three currently-approved RNA-based PMO therapies for DMD. The reported revenues missed the Zacks Consensus Estimate of $264.5 million.
Quarter in Detail
The company’s product revenues were up 13% year over year at $239.0 million, entirely derived from the sale of the above three DMD drugs. The upside was driven by an increase in demand for DMD products. The reported product sales beat our model estimates of $235 million.
The company recorded $22.3 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management had recorded $22.0 million as collaboration revenues, which were also received from Roche.
During the quarter, Sarepta did not generate any revenues from Elevidys.
Adjusted research and development (R&D) expenses totaled $212.2 million in the second quarter, down 8% year over year. This downside is attributable to a decline in manufacturing expenses incurred during the quarter, partially offset by an increase in clinical study expenses.
Adjusted selling, general & administrative (SG&A) expenses were $90.3 million, up 42% year over year. The upside was driven primarily by an increase in professional service expenses incurred by the company for Elevidys’ launch.
2023 Guidance
Sarepta reiterated its previously issued product revenue guidance for the three approved PMO drugs, which are expected to generate more than $925 million in 2023. Management did not issue a guidance on Elevidys sales stating that it will continue to evaluate the gene-therapy’s demand to provide accurate guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 10.64% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 looks promising. 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, Vertex Pharmaceuticals (VRTX - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended June 2023 more than a month ago.
Vertex reported revenues of $2.49 billion in the last reported quarter, representing a year-over-year change of +13.5%. EPS of $3.89 for the same period compares with $3.60 a year ago.
For the current quarter, Vertex is expected to post earnings of $3.93 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.8% over the last 30 days.
Vertex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.