Sarepta Therapeutics: Strong Q4 Earnings Overshadowed by Guidance Miss

Shares of Sarepta Therapeutics (SRPT) dropped 6% in after-hours trading on Monday, despite reporting strong fourth-quarter earnings and sales that beat analyst expectations. The biotechnology company's stock price decline can be attributed to a guidance miss and concerns about the growth rate of its gene therapy, ELEVIDYS.



Sarepta Therapeutics, a leader in precision genetic medicine for rare diseases, reported GAAP and non-GAAP net income of $159.0 million and $206.0 million for the fourth quarter of 2024, respectively. Net product revenues for the quarter totaled $638.2 million, a 75% increase over the same quarter of the prior year. ELEVIDYS, the company's gene therapy for Duchenne muscular dystrophy, contributed $384.2 million to the quarter's net product revenue, representing a 75% increase over the same quarter of the prior year.



Despite the strong earnings and sales performance, Sarepta's stock price declined in after-hours trading due to a guidance miss and concerns about the growth rate of ELEVIDYS. The company projected net product revenue of $2.9 billion to $3.1 billion for the full year 2025, which was below the consensus estimate of $3.2 billion. Additionally, the projected 162% year-over-year growth for ELEVIDYS in 2025 was lower than the 200% growth rate in 2024, raising concerns about the drug's long-term growth prospects.

Analysts' earnings estimates and price targets for Sarepta Therapeutics have been increasing, indicating a positive outlook on the company's financial performance. However, the company's guidance miss and the slower growth rate for ELEVIDYS may lead to a reassessment of these estimates and targets. The strong revenue growth and positive developments in the company's pipeline, such as the successful EMBARK study and the licensing agreement with Arrowhead Pharmaceuticals, have contributed to the analysts' optimism. However, the after-hours decline in Sarepta's stock price suggests that investors may be more cautious about the company's future prospects.

In conclusion, Sarepta Therapeutics reported strong fourth-quarter earnings and sales, but the after-hours decline in the company's stock price highlights the importance of meeting analyst expectations and addressing investor concerns about the growth rate of ELEVIDYS. As the company continues to advance its pipeline and expand its product portfolio, investors will be watching closely to see if Sarepta can regain momentum and deliver on its growth potential.