It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sarepta Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Q2 Earnings Beat, Sales Miss Estimates

Sarepta posted earnings of 7 cents per share in second-quarter 2024, beating the Zacks Consensus Estimate of breakeven earnings. In the year-ago period, the company posted a loss of 27 cents.

The loss included depreciation and amortization expenses and stock-based compensation expenses. Adjusted earnings per share in the quarter stood at 44 cents against the year-ago period’s adjusted loss of $1.01 per share.

Sarepta recorded total revenues of $362.9 million, up 39% year over year. The upside was driven by sales of its four approved marketed therapies for DMD. However, the top line missed the Zacks Consensus Estimate of $386.9 million.

Quarter in Detail

SRPT product revenues were up 51% year over year to $360.5 million, driven by increased demand for its marketed products. The metric missed the Zacks Consensus Estimate and our model estimate, both of which were pegged at $373 million.

Sarepta generated around $238.8 million from the product sales of its three PMO therapies, relatively flat year over year.

The company generated $121.7 million from Elevidys sales compared with $133.9 million in first-quarter 2024. Elevidys sales missed the Zacks Consensus Estimate and our model estimate of $143 million and $150 million, respectively. This miss was likely due to the ‘exceptionally narrow and restrictive label’ initially granted to the therapy by the FDA when it was initially approved last year. The agency expanded Elevidys’ label toward the end of June 2024.

SRPT recorded around $2.4 million as contract manufacturing collaboration revenues associated with commercial Elevidys supply delivered to Roche. In the year-ago period, it registered $22.3 million as collaboration revenues, which were also received from Roche.

Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize Elevidys in ex-U.S. markets.

Adjusted research and development expenses totaled $153.9 million, down 27% year over year. The downside was primarily caused by the capitalization of expenses on Elevidys manufactured after its approval in June 2023.