We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sarepta Therapeutics (SRPT) Up 4.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have added about 4.5% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Loss Narrower Than Expected, Sales Beat
Sarepta reported a loss of 46 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.66. In the year-ago period, the company posted a loss of $2.94 per share.
The loss included depreciation and amortization expenses and stock-based compensation expenses. The adjusted earnings per share in the quarter stood at 37 cents against the year-ago period’s adjusted loss of 80 cents per share.
Sarepta recorded total revenues of $331.8 million, up 44% year over year. The year-over-year increase in revenues was driven by sales of Sarepta’s four approved marketed therapies for DMD. The reported revenues beat the Zacks Consensus Estimate of $286 million.
Quarter in Detail
The company’s product revenues were up 49% year over year at $309.3 million, which beat our model estimates of $256.9 million. The upside was driven by an increased demand for its marketed products.
Sarepta generated $240.2 million from the product sales of its three PMO therapies, up 16% year over year.
During the third quarter, Sarepta commercially launched Elevidys (delandistrogene moxeparvovec, or SRP-9001), which received accelerated approval from the FDA as the first gene therapy for DMD in June 2023. The recently launched therapy generated $69.1 million in sales, which beat our model estimates of $15 million.
The company recorded $22.5 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management recorded $22.5 million as collaboration revenues, which were also received from Roche.
Adjusted research and development (R&D) expenses totaled $163.9 million in the third quarter, down 15% 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 $92.8 million, up 39% 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.
Though management did not issue guidance on Elevidys sales, it expects overall product revenues (across all four approved products) to exceed $1 billion for the full year substantially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 62.55% 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 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Sarepta Therapeutics has a Zacks Rank #2 (Buy). We expect an above average 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, Incyte (INCY - Free Report) , a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
Incyte reported revenues of $919.03 million in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $1.10 for the same period compares with $0.60 a year ago.
Incyte is expected to post earnings of $1.22 per share for the current quarter, representing a year-over-year change of +96.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
Incyte 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sarepta Therapeutics (SRPT) Up 4.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have added about 4.5% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Loss Narrower Than Expected, Sales Beat
Sarepta reported a loss of 46 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.66. In the year-ago period, the company posted a loss of $2.94 per share.
The loss included depreciation and amortization expenses and stock-based compensation expenses. The adjusted earnings per share in the quarter stood at 37 cents against the year-ago period’s adjusted loss of 80 cents per share.
Sarepta recorded total revenues of $331.8 million, up 44% year over year. The year-over-year increase in revenues was driven by sales of Sarepta’s four approved marketed therapies for DMD. The reported revenues beat the Zacks Consensus Estimate of $286 million.
Quarter in Detail
The company’s product revenues were up 49% year over year at $309.3 million, which beat our model estimates of $256.9 million. The upside was driven by an increased demand for its marketed products.
Sarepta generated $240.2 million from the product sales of its three PMO therapies, up 16% year over year.
During the third quarter, Sarepta commercially launched Elevidys (delandistrogene moxeparvovec, or SRP-9001), which received accelerated approval from the FDA as the first gene therapy for DMD in June 2023. The recently launched therapy generated $69.1 million in sales, which beat our model estimates of $15 million.
The company recorded $22.5 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management recorded $22.5 million as collaboration revenues, which were also received from Roche.
Adjusted research and development (R&D) expenses totaled $163.9 million in the third quarter, down 15% 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 $92.8 million, up 39% 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.
Though management did not issue guidance on Elevidys sales, it expects overall product revenues (across all four approved products) to exceed $1 billion for the full year substantially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 62.55% 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 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Sarepta Therapeutics has a Zacks Rank #2 (Buy). We expect an above average 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, Incyte (INCY - Free Report) , a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended September 2023 more than a month ago.
Incyte reported revenues of $919.03 million in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $1.10 for the same period compares with $0.60 a year ago.
Incyte is expected to post earnings of $1.22 per share for the current quarter, representing a year-over-year change of +96.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
Incyte 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.