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Why Is Sarepta Therapeutics (SRPT) Up 4.9% 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 added about 4.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Earnings & Sales Beat Estimates
Sarepta posted third-quarter 2024 adjusted earnings per share (EPS) of 62 cents, which beat the Zacks Consensus Estimate of a loss of 15 cents. Earnings rose 99% year over year, driven by encouraging product sales during the quarter.
The adjusted earnings did not include depreciation and amortization expenses and stock-based compensation costs. Including these items, EPS was 34 cents against the year-ago period’s reported loss of 46 cents.
Sarepta recorded total revenues of $467.2 million, up 41% year over year. The upside was driven by the strong sales performance of Elevidys during the quarter. The reported figure beat the Zacks Consensus Estimate of $399.9 million.
Quarter in Detail
Sarepta product revenues rose 39% year over year to about $430 million, driven by increased demand for its marketed products. The metric beat the Zacks Consensus Estimate and our model estimate of $392 million each.
The company generated around $249 million from the product sales of its three PMO therapies. The figure rose nearly 4% year over year.
Sarepta generated $181 million from Elevidys sales compared with about $122 million in second-quarter 2024. The metric beat the Zacks Consensus Estimate and our model estimate of $162 million and $160 million, respectively.
Sarepta recorded around $37.4 million as collaboration and other revenues associated with commercial Elevidys supply to Roche. This metric also included $9.5 million received as royalty revenues from Elevidys sales by RHHBY in ex-U.S. territories. In the year-ago period, management recorded $22.5 million under this head, all of which were also received from Roche.
Adjusted research and development expenses totaled $199.8 million, up 22% year over year. The upside was primarily caused by an increase in costs associated with the termination of a manufacturing and supply agreement with an affiliate of Thermo Fisher in August.
Adjusted selling, general & administrative expenses totaled $100.2 million, up 8% 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
At the conference call, management reiterated its guidance for fourth-quarter 2024 and full-year 2025. Though Sarepta did not provide any exact guidance for 2024, it expects Elevidys revenues in the fourth quarter of 2024 to double on a sequential basis.
For 2025
For 2025, management also maintained its previously issued guidance of $2.9-$3.1 billion for net product revenues. It expects two-thirds of the revenues to be generated from Elevidys sales and the rest from PMO products.
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 13.25% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot 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 D. 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. 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.
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Why Is Sarepta Therapeutics (SRPT) Up 4.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have added about 4.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Earnings & Sales Beat Estimates
Sarepta posted third-quarter 2024 adjusted earnings per share (EPS) of 62 cents, which beat the Zacks Consensus Estimate of a loss of 15 cents. Earnings rose 99% year over year, driven by encouraging product sales during the quarter.
The adjusted earnings did not include depreciation and amortization expenses and stock-based compensation costs. Including these items, EPS was 34 cents against the year-ago period’s reported loss of 46 cents.
Sarepta recorded total revenues of $467.2 million, up 41% year over year. The upside was driven by the strong sales performance of Elevidys during the quarter. The reported figure beat the Zacks Consensus Estimate of $399.9 million.
Quarter in Detail
Sarepta product revenues rose 39% year over year to about $430 million, driven by increased demand for its marketed products. The metric beat the Zacks Consensus Estimate and our model estimate of $392 million each.
The company generated around $249 million from the product sales of its three PMO therapies. The figure rose nearly 4% year over year.
Sarepta generated $181 million from Elevidys sales compared with about $122 million in second-quarter 2024. The metric beat the Zacks Consensus Estimate and our model estimate of $162 million and $160 million, respectively.
Sarepta recorded around $37.4 million as collaboration and other revenues associated with commercial Elevidys supply to Roche. This metric also included $9.5 million received as royalty revenues from Elevidys sales by RHHBY in ex-U.S. territories. In the year-ago period, management recorded $22.5 million under this head, all of which were also received from Roche.
Adjusted research and development expenses totaled $199.8 million, up 22% year over year. The upside was primarily caused by an increase in costs associated with the termination of a manufacturing and supply agreement with an affiliate of Thermo Fisher in August.
Adjusted selling, general & administrative expenses totaled $100.2 million, up 8% 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
At the conference call, management reiterated its guidance for fourth-quarter 2024 and full-year 2025. Though Sarepta did not provide any exact guidance for 2024, it expects Elevidys revenues in the fourth quarter of 2024 to double on a sequential basis.
For 2025
For 2025, management also maintained its previously issued guidance of $2.9-$3.1 billion for net product revenues. It expects two-thirds of the revenues to be generated from Elevidys sales and the rest from PMO products.
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 13.25% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot 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 D. 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. 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.