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What to Expect from Sarepta’s Second-Quarter Earnings

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A look at Sarepta’s earnings

Sarepta Therapeutics (SRPT) is a commercial-stage biopharmaceutical company. Sarepta develops unique RNA-targeted therapeutics, gene therapies, and other medicines for neuromuscular diseases.

The above chart compares revenues and EPS for Sarepta since the first quarter of 2017 and estimates for the second quarter of 2018. Sarepta is set to release its Q2 2018 earnings on August 8. Analysts estimate Sarepta will report a net loss of $0.89 per share on revenues of ~$71.6 million for Q2 2018.

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Q2 2018 revenue estimates

Wall Street analysts estimate Sarepta’s revenues will increase by over 100% to $71.6 million in Q2 2018 as compared to revenues of $35.0 million during Q2 2017.

The revenue growth is expected to be driven by strong Exondys 51 (Eteplirsen) sales in Q2 2018 following strong demand in US markets. Exondys 51 (eteplirsen) is an RNA-targeted therapy and is currently the only commercialized product in Sarepta’s product portfolio.

Profitability estimates

Analysts estimates suggest a gross profit margin of ~91.3% for Q2 2018, a decrease in gross profit margin as compared to ~98.5% in the second quarter of 2017.

Also, due to higher spending on research and development and higher selling, general, and administrative expenses, the EBITDA margin is expected to be negative during Q2 2018. Further, the company is expected to report a net adjusted loss of ~$54.1 million in Q2 2018 as compared to a net adjusted loss of ~$25.3 million in the second quarter of 2017.

The SPDR S&P Biotech ETF (XBI) holds 1.6% of its total investments in Sarepta (SRPT), 1.7% in Regeneron Pharmaceuticals (REGN), 1.5% in Celgene (CELG), and 1.5% in Biogen (BIIB).

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