Why Is Sarepta Therapeutics (SRPT) Down 1.9% Since Last Earnings Report?

Company Overview - Sarepta Therapeutics reported earnings of 7 cents per share for Q2 2024, surpassing the Zacks Consensus Estimate of breakeven earnings, compared to a loss of 27 cents in the same period last year [2] - Total revenues reached $362.9 million, reflecting a 39% year-over-year increase, although it fell short of the Zacks Consensus Estimate of $386.9 million [3] - Product revenues increased by 51% year over year to $360.5 million, driven by heightened demand for marketed products, but missed the consensus estimate of $373 million [4] Product Performance - Sales from Elevidys amounted to $121.7 million, down from $133.9 million in Q1 2024, missing estimates of $143 million and $150 million due to a restrictive FDA label [5] - Contract manufacturing collaboration revenues from Elevidys supplied to Roche were approximately $2.4 million, a significant decrease from $22.3 million in the previous year [6] Expense Management - Adjusted R&D expenses totaled $153.9 million, down 27% year over year, primarily due to the capitalization of expenses related to Elevidys [7] - Adjusted selling, general, and administrative expenses rose by 17% year over year to $106.0 million, driven by increased professional service expenses for Elevidys' launch [7] Financial Guidance - Management anticipates a quarter-over-quarter increase in Elevidys sales by nearly one-third in Q3 2024, followed by a doubling of revenues from Q3 to Q4 [8] - For 2025, the company expects net product revenues to be in the range of $2.9 billion to $3.1 billion [8] Market Sentiment - There has been a downward trend in estimates revisions, with the consensus estimate shifting by -112.78% [9] - Sarepta Therapeutics currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11] Industry Comparison - Sarepta operates within the Zacks Medical - Biomedical and Genetics industry, where Halozyme Therapeutics has seen a 12.1% increase in stock price over the past month [12] - Halozyme reported revenues of $231.35 million, a year-over-year increase of 4.7%, with an EPS of $0.91 compared to $0.74 a year ago [13]