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Why Is Sarepta Therapeutics (SRPT) Up 6.4% 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 added about 6.4% 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 the most recent earnings report in order to get a better handle on the important catalysts. <p style="text-align: justify;"><strong>Sarepta Q2 Loss Narrows, Exondys 51 Drives Sales</strong></p><p style="text-align: justify;">Sarepta incurred a loss of 43 cents per share in the second quarter of 2018, narrower than the year-ago loss of 48 cents and the Zacks Consensus Estimate of a loss of 47 cents.</p><p style="text-align: justify;">Exondys 51continued its strong performance. Sarepta recorded revenues of $73.5 million, up 13.8% sequentially, primarily attributable to increasing demand for Exondys 51. Revenues also beat the Zacks Consensus Estimate of $71.0 million. In the prior-year quarter, Sarepta had earned revenues of $35.0 million.</p><p style="text-align: justify;"><strong>Operating Expenses</strong></p><p style="text-align: justify;">Research and development (R&amp;D) expenses were $57 million in the second quarter, up 67.2% year over year. The rise was attributable to increased patient enrollment in late-stage studies, higher shared collaboration cost related to utrophin platform and higher costs due to pipeline expansion and ramp-up of manufacturing activities.</p><p style="text-align: justify;">Selling, general &amp; administrative (SG&amp;A) expenses were $37.3 million, up 54.1% year over year due to higher costs related to commercial expansion.</p><p style="text-align: justify;"><strong>2018 Guidance</strong></p><p style="text-align: justify;">In 2018, Sarepta expects to record revenues of $295 million to $305 million.</p>

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -92.18% due to these changes.

VGM Scores

At this time, Sarepta Therapeutics has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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

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.


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