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Sarepta Therapeutics (SRPT) Up 1.2% Since Last Earnings Report: Can It Continue?
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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 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q4 Earnings & Sales Beat Estimates
Sarepta reported earnings of 47 cents per share in the fourth quarter of 2023, against the Zacks Consensus Estimate of a loss of 3 cents. In the year-ago period, the company posted a loss of $1.24 per share.
The loss included depreciation and amortization expenses and stock-based compensation expenses. The adjusted earnings per share in the quarter stood at 82 cents against the year-ago period’s adjusted loss of 61 cents per share.
Sarepta recorded total revenues of $396.8 million, up 54% year over year. The upside was driven by sales of Sarepta’s four approved DMD therapies. The reported revenues beat the Zacks Consensus Estimate of $382.1 million.
Quarter in Detail
The company’s product revenues were up 55% year over year at $365.1 million, in line with our model estimates. The upside was driven by an increased demand for its marketed products.
Sarepta generated around $233.9 million from the product sales of its three PMO therapies, down 1% year over year.
During the fourth quarter, the company generated $131.2 million from Elevidys sales compared with $69.1 million in the third quarter.
The company recorded $31.7 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 $165.1 million in the fourth quarter, down 12% year over year. This downside was caused by a decline in manufacturing expenses incurred during the quarter.
Adjusted selling, general & administrative (SG&A) expenses were $105.7 million, up 22% year over year. The upside was driven primarily by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Full-Year Results
Sarepta reported total revenues of $1.24 billion in 2023, up 33% year over year. The company incurred a loss of $5.80 per share for the full year compared with a loss of $8.03 in the year-ago period. The adjusted loss in 2023 was 64 cents per share compared with an adjusted loss of $3.32 in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -18.53% due to these changes.
VGM Scores
At this time, 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 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, Denali Therapeutics Inc. (DNLI - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Denali Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$0.86 for the same period compares with -$0.75 a year ago.
For the current quarter, Denali Therapeutics is expected to post a loss of $0.67 per share, indicating a change of +16.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +17.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Denali Therapeutics. Also, the stock has a VGM Score of F.
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Sarepta Therapeutics (SRPT) Up 1.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT - 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 its most recent earnings report in order to get a better handle on the important catalysts.
Q4 Earnings & Sales Beat Estimates
Sarepta reported earnings of 47 cents per share in the fourth quarter of 2023, against the Zacks Consensus Estimate of a loss of 3 cents. In the year-ago period, the company posted a loss of $1.24 per share.
The loss included depreciation and amortization expenses and stock-based compensation expenses. The adjusted earnings per share in the quarter stood at 82 cents against the year-ago period’s adjusted loss of 61 cents per share.
Sarepta recorded total revenues of $396.8 million, up 54% year over year. The upside was driven by sales of Sarepta’s four approved DMD therapies. The reported revenues beat the Zacks Consensus Estimate of $382.1 million.
Quarter in Detail
The company’s product revenues were up 55% year over year at $365.1 million, in line with our model estimates. The upside was driven by an increased demand for its marketed products.
Sarepta generated around $233.9 million from the product sales of its three PMO therapies, down 1% year over year.
During the fourth quarter, the company generated $131.2 million from Elevidys sales compared with $69.1 million in the third quarter.
The company recorded $31.7 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 $165.1 million in the fourth quarter, down 12% year over year. This downside was caused by a decline in manufacturing expenses incurred during the quarter.
Adjusted selling, general & administrative (SG&A) expenses were $105.7 million, up 22% year over year. The upside was driven primarily by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Full-Year Results
Sarepta reported total revenues of $1.24 billion in 2023, up 33% year over year. The company incurred a loss of $5.80 per share for the full year compared with a loss of $8.03 in the year-ago period. The adjusted loss in 2023 was 64 cents per share compared with an adjusted loss of $3.32 in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -18.53% due to these changes.
VGM Scores
At this time, 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 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, Denali Therapeutics Inc. (DNLI - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Denali Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$0.86 for the same period compares with -$0.75 a year ago.
For the current quarter, Denali Therapeutics is expected to post a loss of $0.67 per share, indicating a change of +16.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +17.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Denali Therapeutics. Also, the stock has a VGM Score of F.