It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT). Shares have added about 1.2% 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 Beats Q1 Earnings and Sales Estimates
Sarepta reported a loss of $1.20 per share for the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.35 per share. The loss was also narrower than the year-ago loss of $2.10 per share.
The company reported adjusted loss of 56 cents per share, down from $1.44 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 $210.8 million, up 43.5% year over year. Revenues beat the Zacks Consensus Estimate of $203.52 million. The year-over-year increase in revenues was driven by additional sales following the launch of Amondys 45 in February 2021 and continued demand for Sarepta’s two other drugs — Exondys 51 and Vyondys 53.
Quarter in Details
The company derived product revenues of $188.8 million, up 51.2% year over year.
Sales of Exondys 51, Vyondys 53, and Amondys 45 during the first quarter were $117.1 million, $28.1 million and $43.6 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.
The company recorded $22 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. Collaboration revenues were flat year over year.
Adjusted research and development (R&D) expenses totaled $173.2 million in the first quarter, down 2.4% year over year.
Adjusted selling, general & administrative (SG&A) expenses were $53.2 million, down 3.2% year over year.
2022 Guidance Maintained
Sarepta reiterated its guidance for revenues in 2022. The company expects total revenues in 2022 to be more than $880 million. The company expects its net product revenues to be more than $800 million in 2022, indicating year-over-year growth of more than 30%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 18.96% due to these changes.
VGM Scores
Currently, Sarepta Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot 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 D. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. 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, Gilead Sciences (GILD), has gained 3.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Gilead reported revenues of $6.59 billion in the last reported quarter, representing a year-over-year change of +2.6%. EPS of $2.12 for the same period compares with $2.08 a year ago.
For the current quarter, Gilead is expected to post earnings of $1.52 per share, indicating a change of -18.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
Gilead has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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