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Why Is Sarepta Therapeutics (SRPT) Down 1.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have lost about 1.1% 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 catalysts.
Sarepta Q1 Loss Widens Y/Y, Revenues Beat Estimates
Sarepta incurred an adjusted loss of $1.54 per share in the first quarter of 2021, wider than the year-ago adjusted loss of $1.04 per share. The wider year-over-year loss can be primarily attributed to a significant rise in operating expenses.
Notably, the adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expense and other items. Including all these items, the company incurred a loss of $2.10 per share, significantly wider than loss of 23 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of $2.01 per share.
Sarepta recorded total revenues of $146.9 million, up 29.3% year over year. Revenues beat the Zacks Consensus Estimate of $140.7 million.
Quarter in Details
The company recorded product revenues of $124.9 million, up 24% year over year, reflecting higher demand for Exondys 51 and additional revenues from Vyondys 53, which was launched in December 2019.
Sales of Exondys 51, Vyondys 53, and Amondys 45 during the first quarter were $107.2 million, $17.5 million. and $0.2 million, respectively. The company recorded $22 million in collaboration revenues related to its licensing agreement with Roche for commercialization of SRP-9001 in ex-U.S. markets.In the year-ago quarter, the company had recorded $13.2 million in collaboration revenues.
Adjusted research and development (R&D) expenses totaled $173.5 million in the first quarter, up 51.9% year over year. The increase was primarily due to increased clinical and manufacturing activities related to its micro-dystrophin gene therapy program as well as other gene therapy programs.
Adjusted selling, general & administrative (SG&A) expenses were $51.5 million, down 5.5% year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 36.69% 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 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.
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Why Is Sarepta Therapeutics (SRPT) Down 1.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT - Free Report) . Shares have lost about 1.1% 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 catalysts.
Sarepta Q1 Loss Widens Y/Y, Revenues Beat Estimates
Sarepta incurred an adjusted loss of $1.54 per share in the first quarter of 2021, wider than the year-ago adjusted loss of $1.04 per share. The wider year-over-year loss can be primarily attributed to a significant rise in operating expenses.
Notably, the adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expense and other items. Including all these items, the company incurred a loss of $2.10 per share, significantly wider than loss of 23 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of $2.01 per share.
Sarepta recorded total revenues of $146.9 million, up 29.3% year over year. Revenues beat the Zacks Consensus Estimate of $140.7 million.
Quarter in Details
The company recorded product revenues of $124.9 million, up 24% year over year, reflecting higher demand for Exondys 51 and additional revenues from Vyondys 53, which was launched in December 2019.
Sales of Exondys 51, Vyondys 53, and Amondys 45 during the first quarter were $107.2 million, $17.5 million. and $0.2 million, respectively. The company recorded $22 million in collaboration revenues related to its licensing agreement with Roche for commercialization of SRP-9001 in ex-U.S. markets.In the year-ago quarter, the company had recorded $13.2 million in collaboration revenues.
Adjusted research and development (R&D) expenses totaled $173.5 million in the first quarter, up 51.9% year over year. The increase was primarily due to increased clinical and manufacturing activities related to its micro-dystrophin gene therapy program as well as other gene therapy programs.
Adjusted selling, general & administrative (SG&A) expenses were $51.5 million, down 5.5% year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 36.69% 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 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.