It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT). Shares have added about 26.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sarepta Therapeutics due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Sarepta Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.
Q3 Earnings Miss, Sales Beat Estimates
Sarepta reported third-quarter 2025 adjusted loss of 13 cents per share against the Zacks Consensus Estimate for earnings per share (EPS) of one cent. In the year-ago period, the company posted an adjusted EPS of 43 cents.
The adjusted figures exclude depreciation and amortization costs, stock-based compensation expenses, gains on strategic investments, losses on debt extinguishment and restructuring charges. Including these items, loss during the quarter was $1.80, against EPS of 34 cents in the year-ago period.
Sarepta recorded total revenues of $399.4 million, down nearly 15% year over year. This downtick was owing to lower sales of Elevidys. Yet, the reported figure beat the Zacks Consensus Estimate of $352.6 million.
Quarter in Detail
Product revenues fell 14% year over year to $370.0 million.
The company generated $238.5 million from the product sales of its three PMO therapies, down 4% year over year. The figure beat the Zacks Consensus Estimate of $225 million and our model estimate of $220 million.
Sarepta generated $131.5 million from Elevidys sales, down 27% year over year, primarily due to its decision to suspend shipments to non-ambulatory patients in June 2025 amid safety concerns. Despite this decline, the therapy’s sales beat both the Zacks Consensus Estimate of $107 million and our model estimates of $120 million.
Sarepta recorded approximately $29.3 million in collaboration and other revenues associated with the commercial Elevidys supply to Roche. This figure fell nearly 22% year over year, reflecting lower contract manufacturing revenues due to reduced shipment volumes of Elevidys to Roche during the quarter.
Adjusted research and development (R&D) expenses totaled $206.5 million, up 3% year over year. This upside largely reflects an increase in up-front and milestone expenses made toward pipeline development during the quarter.
Adjusted selling, general & administrative (SG&A) expenses declined 23% to $77.1 million, primarily due to the company’s restructuring plan launched in July.
2025 Guidance
Sarepta has not yet quantified the potential impact of the recent reported patient deaths on Elevidys sales, but continues to expect at least $500 million in annual revenue from Elevidys infusions in the ambulant population for the full year 2025. The company anticipates fourth-quarter infusion volumes to be flat to slightly down sequentially, reflecting ongoing market disruptions and typical seasonal dynamics.
It also expects to incur $420-$430 million in combined adjusted SG&A and R&D expenses for the full year, which includes a $200 milestone payment to Arrowhead Pharmaceuticals for the second DM1 program. The guidance for this expense for the full year is around $1.86 billion.
Sarepta expects to generate around $900 million from the sale of its three PMO therapies in 2025.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -10.82% due to these changes.
VGM Scores
At this time, Sarepta Therapeutics has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Sarepta Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Sarepta Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Bristol Myers Squibb (BMY), a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Bristol Myers reported revenues of $12.22 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $1.63 for the same period compares with $1.80 a year ago.
Bristol Myers is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of -1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
Bristol Myers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Sarepta Therapeutics, Inc. (SRPT): Free Stock Analysis Report Bristol Myers Squibb Company (BMY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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