Yahoo Finance Earnings Beat: Sarepta Therapeutics, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) just released its quarterly report and things are looking bullish. 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%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
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 leap 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 sizeable expansion 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. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sarepta Therapeutics, with the most bullish analyst valuing it at US$224 and the most bearish at US$128 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. 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. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sarepta Therapeutics is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sarepta Therapeutics' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Sarepta Therapeutics (at least 1 which is significant) , and understanding these should be part of your investment process.
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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.
