Sarepta to Report Q2 Earnings: What's in Store for the Stock?

We expect Sarepta Therapeutics SRPT to report second-quarter 2025 earnings on Aug. 6, after market close. The company’s earnings missed estimates by a wider margin in the last reported quarter.

The Zacks Consensus Estimate for total sales and earnings per share (EPS) is pegged at approximately $530 million and $1.11, respectively. Both metrics indicate a significant increase from the year-ago period.

Factors Likely to Shape SRPT’s Upcoming Results

Sarepta currently has four marketed products in its portfolio, all targeting Duchenne muscular dystrophy (DMD). These include the one-shot gene therapy Elevidys and three PMO therapies (Exondys 51, Vyondys 53 and Amondys 45).

Last month, the company issued preliminary numbers for total net product revenues during the second quarter, which stand at $513 million. This includes $282 million from Elevidys sales. Sarepta also reported preliminary combined adjusted R&D and SG&A expenses of around $294 million for the quarter.

The stock has been facing a lot of heat from investors after three patient deaths were linked to its gene therapy treatments and attributed to acute liver failure (ALF). While two deaths occurred in patients after receiving Elevidys, one was caused by an experimental limb-girdle muscular dystrophy (LGMD) therapy. All deaths occurred in non-ambulatory patients and were linked to the AAVrh74 gene therapy vector, used in both Elevidys and Sarepta’s experimental LGMD therapies.

While the two Elevidys deaths had initially prompted Sarepta to suspend Elevidys dosing for non-ambulatory patients, the death of an ambulatory DMD patient in Brazil post-treatment with the therapy led to the product being withdrawn completely from the market.

However, the FDA cleared Elevidys for use in ambulatory patients last week after finding no link between the therapy and the Brazilian patient’s death. While Sarepta intends to resume delivery of Elevidys shipments soon, we also expect it to provide an update on the sales guidance for the product. Sarepta previously announced it would not host a conference call for Q2 earnings.

To address the safety issue in non-ambulatory patients, Sarepta is working to create a new protocol with an enhanced immunosuppression regimen to make Elevidys administration safer for non-ambulatory DMD patients. The company plans to submit these findings to the FDA in hopes of resuming dosing in the non-ambulatory patient population.

Last month, Sarepta initiated a restructuring plan to save nearly $400 million annually starting in 2026. To achieve this target, the company has decided to lay off 36% of its workforce — around 500 employees — which is expected to save nearly $120 million per year.

Sarepta plans to generate around $300 million in annual savings by reprioritizing its pipeline. As part of this plan, it paused development of its LGMD pipeline and instead shifted focus to the siRNA programs, which were acquired as part of a multi-billion-dollar licensing deal with Arrowhead Pharmaceuticals ARWR. Per this deal, Sarepta acquired exclusive rights to Arrowhead’s four clinical-stage programs, each being evaluated in separate phase I/II studies. These include SRP-1001 in facioscapulohumeral muscular dystrophy (FSHD), SRP-1002 in idiopathic pulmonary fibrosis (IPF), SRP-1003 in myotonic dystrophy type 1 (DM1) and SRP-1004 in spinocerebellar ataxia 2 (SCA2). Initial data on the FSHD and DM1 programs are expected before year-end.

SRPT’s Earnings Surprise History

The biotech firm’s performance has been mixed over the past four quarters. Its earnings missed estimates in two of the trailing four quarters, beat the mark once and met the same on another occasion, resulting in a negative average surprise of 194.53%.

Sarepta Therapeutics, Inc. Price and EPS Surprise

 

Sarepta Therapeutics, Inc. price-eps-surprise | Sarepta Therapeutics, Inc. Quote

The stock has underperformed the industry this year so far, as shown in the chart below.

What Our Model Predicts for SRPT

Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Sarepta has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:

Genmab GMAB has an Earnings ESP of +10.03% and a Zacks Rank of 2 at present.

Shares of GMAB have gained 4% year to date. It beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 14.90%. Genmab intends to report second-quarter results on Aug. 7.

Acadia Pharmaceuticals ACAD currently has an Earnings ESP of +17.43% and a Zacks Rank of 3.

ACAD stock has surged 28% this year so far. It beat on earnings in three of the last four quarters and missed in the other one, delivering an average surprise of 19.58%. Acadia will report second-quarter earnings on Aug. 6.

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This article originally published on Zacks Investment Research (zacks.com).

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