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Sarepta Therapeutics (SRPT) Up 2.9% 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 2.9% 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 drivers.

Sarepta Q1 Earnings Top, Exondys 51 Sales Up

Sarepta incurred an adjusted loss of 75 cents per share in the first quarter of 2019, wider than the year-ago loss of 28 cents per share. The wider year-over-year loss can be primarily attributed to a significant rise in operating expenses.

Notably, the adjusted figure excluded one-time items, depreciation & amortization expenses, interest expenses, and income tax benefit. Including all these items, the company incurred a loss of $1.07 per share compared with a loss of 55 cents in the year-ago quarter. The loss was much narrower than the Zacks Consensus Estimate of a loss of $2.05.

Sarepta recorded total revenues of $87 million, up 3.1% sequentially, entirely from the sale of Exondys 51. Revenues were in line with the Zacks Consensus Estimate. In the prior-year quarter, Sarepta had earned revenues of $64.6 million.

Operating Expenses

Adjusted research and development (R&D) expenses totaled $81.4 million in the first quarter, up 88% year over year. The upside was primarily driven by ramp-up of manufacturing activities for micro-dystrophin program and initiation of certain post marketing studies for Exondys 51. The metric was partially offset by lower cost related to clinical studies evaluating Exondys 51 and golodirsen.

Adjusted selling, general & administrative (SG&A) expenses were $47.8 million, up 41.8% year over year. Higher costs related to the global commercial expansion of its products and increased personnel expenses led to the uptick.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -34.47% due to these changes.

VGM Scores

Currently, Sarepta Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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.


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