Sarepta Therapeutics Earnings: Here’s Why Investors are Excited Now

Sarepta Therapeutics Inc (NASDAQ:SRPT) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.57%.
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Sarepta Therapeutics Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.41 in the quarter versus EPS of $-0.78 in the year-earlier quarter.

Revenue: Decreased 59.86% to $4.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.41 per share. By that measure, the company beat the mean analyst estimate of $-0.62. It missed the average revenue estimate of $5.85 million.

Quoting Management: “We are encouraged by our initial interactions with the U.S. Food and Drug Administration regarding a potential accelerated approval regulatory path for eteplirsen for the treatment of Duchenne muscular dystrophy, and we are finalizing a response to the FDA’s request for more data to help us determine the feasibility of this pathway,” said Chris Garabedian, president and chief executive officer of Sarepta Therapeutics. “In parallel, we continue to advance the clinical, regulatory, and manufacturing activities for eteplirsen and our additional DMD product candidates to build a successful franchise in this important disease area.”

Key Stats (on next page)…

Revenue decreased 38.69% from $7.34 million in the previous quarter. EPS decreased to $-0.41 in the quarter versus EPS of $-2.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.4 to a loss $0.62. For the current year, the average estimate has moved down from a loss of $1.57 to a loss of $2.9 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)