A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT Quick QuoteSRPT - Free Report) . Shares have added about 1.2% 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 the most recent earnings report in order to get a better handle on the important drivers.

Sarepta Beats Q2 Earnings and Sales Estimates

Sarepta reported loss of $1.02 per share for the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.03 per share. The loss was also narrower than the year-ago loss of $1.93 per share.

The company incurred adjusted loss of $1.52 per share, wider than loss of $1.51 in the year-ago quarter Notably, the adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expense and other items.

Sarepta recorded total revenues of $164.1 million, up 19.5% year over year. Revenues beat the Zacks Consensus Estimate of $147.4 million. The increase in revenues was driven by the stronger-than-expected launch uptake of Amondys 45 and continued demand for Sarepta’s other two drugs — Exondys 51 and Vyondys 53. The company also raised its guidance for revenues for 2021 following the strong demand trends for its drugs.

Quarter in Details

The company derived product revenues of $141.8 million, up 27.4% year over year, reflecting higher demand for Exondys 51 and Vyondys 53, and additional revenues from Amondys 45.

Sales of Exondys 51, Vyondys 53, and Amondys 45 during the second quarter were $112.5 million, $22.4 million and $6.9 million, respectively. In the first quarter of 2021, sales of Exondys 51, Vyondys 53, and Amondys 45 were $107.2 million, $17.5 million and $0.2 million, respectively. Second-quarter sales reflect sequential growth for each drug. Exondys 51 sales rose 8% year over year.

The company recorded $22.3 million in collaboration revenues, primarily from its licensing agreement with Roche for commercialization rights of its gene therapy candidate, SRP-9001 as DMD therapy in ex-U.S. markets. In the year-ago quarter, the company had recorded $26 million in collaboration revenues.

Adjusted research and development (R&D) expenses totaled $189 million in the second quarter, up 17.8% year over year. The increase was primarily due to increased clinical and manufacturing activities, especially related to its micro-dystrophin gene therapy program, and higher milestone payments made by Sarepta.

Adjusted selling, general & administrative (SG&A) expenses were $54 million, down 1.9% year over year.

2021 Guidance Raised

Sarepta raised it guidance for revenues in 2021 following strong performance of its three DMD drugs in the first half of 2021. The company now expects revenues to be in the range of $565-$575 million, indicating year-over-year growth of nearly 25% at the midpoint of the range. Previously, the company expected the same to be between $537 million and $547 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -15.88% due to these changes.

VGM Scores

At this time, Sarepta Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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

Sarepta Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.