Sarepta Therapeutics, Inc. (NasdaqGS:SRPT) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.
The company is expected to report earnings of -$1.40/share on revenue of $133.7 million. The consensus earnings per share (EPS) of -$1.40/share is based on a poll of 6 analysts and represents a decline in eps of -22.9% over the same quarter last year, when the company reported earnings of -$1.14/share.
The revenue forecast of $133.7 million based on a poll of 16 analysts implies a year-over-year (YoY) growth in revenue of 35.0%. Last year the company reported $99.041 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, and missed expectations 7 quarters.
What are your expectations from Sarepta Therapeutics, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −1.5%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 5, 2020||$156.73||$154.42||−1.5%||Decline|
|May 6, 2020||$119.44||$123.61||3.5%||Increase|
|February 26, 2020||$113.79||$107.67||−5.4%||Decline|
|November 7, 2019||$92.31||$96.28||4.3%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.51, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.51 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Sarepta Therapeutics, Inc. is currently trading at $135.91/share, down −3.9% for the day. The company is trading at approximately 77.7% of its 52-week high of $175/share. The company’s stock price is down −12.0% since the last earnings report and down −1.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 40.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −20.12 and a forward P/E multiple of −25.54.
Sarepta Therapeutics, Inc.’s current share price also implies a price-to-book (P/B) multiple of 10.23. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$135.91|
|P/E Ratio (Fwd)||−25.5x|
|Total Debt / Total Capital||6.6%|
|Levered Free Cash Flow||$234 million|
|EV / EBITDA||−16.5x|
Sarepta Therapeutics, Inc. is a large-cap stock with a market capitalization of $10.67 billion and a total enterprise value of $9.39 billion. The company operates in the Healthcare sector and the Biotechnology industry.
Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapy, and other genetic therapeutic modalities approaches for the treatment of rare diseases. The company offers EXONDYS 51 injection to treat duchenne muscular dystrophy (DMD) in patients who have a confirmed mutation of the DMD gene that is amenable to exon 51 skipping; and VYONDYS 53 for the treatment of DMD in patients who have a confirmed mutation of the DMD gene that is amenable to exon 53 skipping. It also developing Casimersen, a product candidate that uses phosphorodiamidate morpholino oligomer (PMO) chemistry and exon-skipping technology to skip exon 45 of the DMD gene; SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; SRP-9001, a DMD micro-dystrophin gene therapy program; SRP-9003, a limb-girdle muscular dystrophies gene therapy program; and LYS-SAF 302 to treat mucopolysaccharidosis type IIIA. The company has collaboration agreements with F. Hoffman-La Roche Ltd; Nationwide Children’s Hospital; Lysogene; Duke University; Genethon; StrideBio; the United States Army Medical Research Institute of Infectious Diseases; the Department of Defense’s lead laboratory; the Dyno Therapeutics, Inc; and Personalis, Inc. It also has a research and option agreement with Codiak BioSciences, Inc. to design and develop engineered exosome therapeutics to deliver gene therapy, gene editing, and RNA technologies for neuromuscular diseases. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts.