It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT). Shares have added about 13.8% 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 drivers.
Sarepta Q2 Earnings Miss, Sales Beat Estimates
Sarepta reported a loss of $2.65 per share for the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $1.07 per share. The loss was also wider than the year-ago loss of $1.02 per share.
The company reported an adjusted loss of $1.18 per share, narrower than a loss of $1.64 in the year-ago quarter. The adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expenses, and other items.
Sarepta recorded total revenues of $233.5 million, up 42.3% year over year. Revenues beat the Zacks Consensus Estimate of $220.1 million. The year-over-year increase in revenues was driven by higher sales of Exondys 51, Vyondys 53, and Amondys 45
Quarter in Detail
The company derived product revenues of $211.2 million, up 49% year over year.
Sales of Exondys 51 were up 11% year over year to $126.4 million while sales of Vyondys 53 rose 46% year over year to $30.2 million. During the quarter, the company recorded $54.7 million as revenue from Amondys 45 product sales, as compared to $6.9 million in the year-ago quarter.
The company recorded $22.3 million in collaboration revenues, primarily from its licensing agreement with Roche. Collaboration revenues were flat compared with the year-ago quarter’s levels.
Adjusted research and development (R&D) expenses totaled $230.4 million in the second quarter, up 4.4% year over year.
Adjusted selling, general & administrative (SG&A) expenses were $63.7 million, up 18% year over year.
2022 Guidance Raised
Following the outperformance of net product revenues in first-half 2022, Sarepta raised its revenue guidance for 2022. SRPT now expects total revenues in 2022 to be in the range of $905-$920, up from the previous guidance of total revenues to be more than $880 million.
Sarepta expects its net product revenues for 2022 to be in the range of $825-$840 million, up from the previous guidance of net product revenues being more than $800 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -26.79% due to these changes.
At this time, Sarepta Therapeutics has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
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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