Sarepta Therapeutics (NASDAQ:SRPT) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Sarepta reported quarterly EPS of $0.13, beating the $0.07 consensus, and revenue of $381.35 million, above expectations; revenue was down 4.5% year over year.
• The company raised the low end of its 2026 net product revenue outlook by $50 million to $1.25 billion–$1.3 billion, citing strong PMO sales and stabilization in ELEVIDYS. Management expects Q4 ELEVIDYS revenue to be roughly in line with Q3.
• Shares fell 7.5% to $17.57 after the results. Analysts’ consensus rating was “Reduce,” with an average price target of $23.71.

Sarepta Therapeutics (NASDAQ:SRPT - Get Free Report) announced its quarterly earnings data on Thursday. The biotechnology company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.06, FiscalAI reports. The company had revenue of $381.35 million during the quarter, compared to analysts' expectations of $352.20 million. Sarepta Therapeutics had a negative net margin of 13.48% and a negative return on equity of 1.60%. The business's quarterly revenue was down 4.5% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.13) EPS.

Here are the key takeaways from Sarepta Therapeutics' conference call:

• Sarepta raised the low end of its 2026 net product revenue guidance by $50 million to $1.25 billion–$1.3 billion, citing strong PMO sales and stabilization in ELEVIDYS. Q3 product revenue was $324 million, down 13% year over year; ELEVIDYS contributed $83 million and the PMO franchise $240 million.
• ELEVIDYS enrollment-form activity was in line with Q2, which management described as a new baseline; the company expects Q4 ELEVIDYS revenue to be roughly in line with Q3. Executives said long-term data and results in patients ages 8–12 are supporting physician and family discussions, but offered no timing for renewed growth.
• Sarepta reported $23 million in Q3 non-GAAP operating profit and nearly $1 billion in cash and investments; management said its base business generated nearly $300 million of cash year to date after adjusting for Arrowhead collaboration payments. The company also narrowed its full-year non-GAAP R&D and SG&A expense guidance to $800 million–$825 million.
• Q3 product-revenue gross margin was 59%, including a $52 million take-or-pay charge for unmanufactured ELEVIDYS inventory that reduced the quarter’s margin by about 19 percentage points. Sarepta also said it expects competition for its exon 51 therapy in early 2027, though it does not expect widespread switching of stable patients initially.
• Data from the DM1 and FSHD multiple-ascending-dose studies are expected in the coming weeks and are intended to guide dose selection and pivotal-trial plans; those programs have not yet demonstrated clinical benefit in these studies. Sarepta will not resume the ENVISION trial, citing practical barriers, and is relying on ENDEAVOR Cohort 8 data to inform discussions with the FDA about ELEVIDYS in non-ambulatory patients.

Sarepta Therapeutics Trading Down 7.5%

Shares of SRPT stock traded down $1.42 during mid-day trading on Thursday, reaching $17.57. The company's stock had a trading volume of 1,867,021 shares, compared to its average volume of 2,592,270. The company has a quick ratio of 2.62, a current ratio of 4.42 and a debt-to-equity ratio of 0.55. The firm has a market capitalization of $1.86 billion, a PE ratio of -6.06, a price-to-earnings-growth ratio of 0.35 and a beta of 0.45. The company's 50 day simple moving average is $19.20 and its 200-day simple moving average is $18.66. Sarepta Therapeutics has a 12-month low of $14.68 and a 12-month high of $24.68.

Analysts Set New Price Targets

A number of research firms have issued reports on SRPT. Needham & Company LLC reissued an "underperform" rating on shares of Sarepta Therapeutics in a research report on Monday, September 28th. Wall Street Zen downgraded Sarepta Therapeutics from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Piper Sandler cut their price objective on Sarepta Therapeutics from $23.00 to $20.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. William Blair raised Sarepta Therapeutics to a "hold" rating in a research note on Wednesday, September 23rd. Finally, Wolfe Research upgraded Sarepta Therapeutics from a "peer perform" rating to an "outperform" rating and set a $27.00 target price for the company in a report on Thursday, July 9th. Six analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have given a Sell rating to the company. Based on data from MarketBeat, Sarepta Therapeutics currently has an average rating of "Reduce" and a consensus target price of $23.71.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc NASDAQ: SRPT is a biotechnology company focused on developing and commercializing precision genetic medicines for rare diseases. Its research programs use RNA-based technologies, gene therapy and other genetic approaches to address the underlying causes of serious neuromuscular disorders.

The company's primary focus is Duchenne muscular dystrophy (DMD), a progressive genetic disease that causes muscle weakness and loss of function. Sarepta markets Exondys 51 (eteplirsen), Vyondys 53 (golodirsen) and Amondys 45 (casimersen), RNA-based therapies designed to help certain patients produce a shortened but functional form of dystrophin.

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