Results: Sarepta Therapeutics, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) just kicked off its latest quarterly results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 10% higher than the analysts had forecast, at US$413m, while EPS were US$0.37 beating analyst models by 957%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sarepta Therapeutics after the latest results.

Check out our latest analysis for Sarepta Therapeutics

Taking into account the latest results, the current consensus from Sarepta Therapeutics' 17 analysts is for revenues of US$1.89b in 2024. This would reflect a huge 35% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 1,697% to US$3.21. In the lead-up to this report, the analysts had been modelling revenues of US$1.85b and earnings per share (EPS) of US$2.28 in 2024. So it seems there's been a definite increase in optimism about Sarepta Therapeutics' future following the latest results, with a massive increase in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of US$166, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sarepta Therapeutics analyst has a price target of US$224 per share, while the most pessimistic values it at US$128. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sarepta Therapeutics shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Sarepta Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 49% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 28% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sarepta Therapeutics to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sarepta Therapeutics following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$166, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sarepta Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sarepta Therapeutics has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.