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Why Is Sarepta Therapeutics (SRPT) Down 1.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have lost about 1.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
Q2 Earnings Beat, Sales Miss Estimates
Sarepta posted earnings of 7 cents per share in second-quarter 2024, beating the Zacks Consensus Estimate of breakeven earnings. In the year-ago period, the company posted a loss of 27 cents.
The loss included depreciation and amortization expenses and stock-based compensation expenses. Adjusted earnings per share in the quarter stood at 44 cents against the year-ago period’s adjusted loss of $1.01 per share.
Sarepta recorded total revenues of $362.9 million, up 39% year over year. The upside was driven by sales of its four approved marketed therapies for DMD. However, the top line missed the Zacks Consensus Estimate of $386.9 million.
Quarter in Detail
SRPT product revenues were up 51% year over year to $360.5 million, driven by increased demand for its marketed products. The metric missed the Zacks Consensus Estimate and our model estimate, both of which were pegged at $373 million.
Sarepta generated around $238.8 million from the product sales of its three PMO therapies, relatively flat year over year.
The company generated $121.7 million from Elevidys sales compared with $133.9 million in first-quarter 2024. Elevidys sales missed the Zacks Consensus Estimate and our model estimate of $143 million and $150 million, respectively. This miss was likely due to the ‘exceptionally narrow and restrictive label’ initially granted to the therapy by the FDA when it was initially approved last year. The agency expanded Elevidys’ label toward the end of June 2024.
SRPT recorded around $2.4 million as contract manufacturing collaboration revenues associated with commercial Elevidys supply delivered to Roche. In the year-ago period, it registered $22.3 million as collaboration revenues, which were also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize Elevidys in ex-U.S. markets.
Adjusted research and development expenses totaled $153.9 million, down 27% year over year. The downside was primarily caused by the capitalization of expenses on Elevidys manufactured after its approval in June 2023.
Adjusted selling, general & administrative expenses were $106.0 million, up 17% year over year. This was primarily caused by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Financial Guidance
For 2024
Though management did not issue any numbers for 2024, it did mention in the conference call that it expects to see a quarter-over-quarter jump in Elevidys sales by nearly one-third in the third quarter, followed by a doubling of revenues from the third to the fourth quarter.
For 2025
Alongside the earnings release, management issued fresh guidance for the full year 2025. It expects net product revenues in the range of $2.9-$3.1 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -112.78% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has an average Growth Score of C, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Halozyme Therapeutics (HALO - Free Report) , has gained 12.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Halozyme Therapeutics reported revenues of $231.35 million in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.91 for the same period compares with $0.74 a year ago.
Halozyme Therapeutics is expected to post earnings of $1 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halozyme Therapeutics. Also, the stock has a VGM Score of B.
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Why Is Sarepta Therapeutics (SRPT) Down 1.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have lost about 1.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
Q2 Earnings Beat, Sales Miss Estimates
Sarepta posted earnings of 7 cents per share in second-quarter 2024, beating the Zacks Consensus Estimate of breakeven earnings. In the year-ago period, the company posted a loss of 27 cents.
The loss included depreciation and amortization expenses and stock-based compensation expenses. Adjusted earnings per share in the quarter stood at 44 cents against the year-ago period’s adjusted loss of $1.01 per share.
Sarepta recorded total revenues of $362.9 million, up 39% year over year. The upside was driven by sales of its four approved marketed therapies for DMD. However, the top line missed the Zacks Consensus Estimate of $386.9 million.
Quarter in Detail
SRPT product revenues were up 51% year over year to $360.5 million, driven by increased demand for its marketed products. The metric missed the Zacks Consensus Estimate and our model estimate, both of which were pegged at $373 million.
Sarepta generated around $238.8 million from the product sales of its three PMO therapies, relatively flat year over year.
The company generated $121.7 million from Elevidys sales compared with $133.9 million in first-quarter 2024. Elevidys sales missed the Zacks Consensus Estimate and our model estimate of $143 million and $150 million, respectively. This miss was likely due to the ‘exceptionally narrow and restrictive label’ initially granted to the therapy by the FDA when it was initially approved last year. The agency expanded Elevidys’ label toward the end of June 2024.
SRPT recorded around $2.4 million as contract manufacturing collaboration revenues associated with commercial Elevidys supply delivered to Roche. In the year-ago period, it registered $22.3 million as collaboration revenues, which were also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize Elevidys in ex-U.S. markets.
Adjusted research and development expenses totaled $153.9 million, down 27% year over year. The downside was primarily caused by the capitalization of expenses on Elevidys manufactured after its approval in June 2023.
Adjusted selling, general & administrative expenses were $106.0 million, up 17% year over year. This was primarily caused by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Financial Guidance
For 2024
Though management did not issue any numbers for 2024, it did mention in the conference call that it expects to see a quarter-over-quarter jump in Elevidys sales by nearly one-third in the third quarter, followed by a doubling of revenues from the third to the fourth quarter.
For 2025
Alongside the earnings release, management issued fresh guidance for the full year 2025. It expects net product revenues in the range of $2.9-$3.1 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -112.78% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has an average Growth Score of C, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Halozyme Therapeutics (HALO - Free Report) , has gained 12.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Halozyme Therapeutics reported revenues of $231.35 million in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.91 for the same period compares with $0.74 a year ago.
Halozyme Therapeutics is expected to post earnings of $1 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halozyme Therapeutics. Also, the stock has a VGM Score of B.