One thing we could say about the analysts on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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Following the downgrade, the current consensus from Sarepta Therapeutics' 21 analysts is for revenues of US$2.6b in 2025 which - if met - would reflect a decent 14% increase on its sales over the past 12 months. Losses are presumed to reduce, shrinking 18% per share from last year to US$2.07. Prior to this update, the analysts had been forecasting revenues of US$3.1b and earnings per share (EPS) of US$6.38 in 2025. There looks to have been a major change in sentiment regarding Sarepta Therapeutics' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Sarepta Therapeutics NasdaqGS:SRPT Earnings and Revenue Growth May 14th 2025

The consensus price target fell 34% to US$96.72, implicitly signalling that lower earnings per share are a leading indicator for Sarepta Therapeutics' valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sarepta Therapeutics' revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2025 being well below the historical 31% p.a. growth over the last five years. Compare this to the 564 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it looks like Sarepta Therapeutics is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Sarepta Therapeutics to become unprofitable this year. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Sarepta Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Sarepta Therapeutics going out to 2027, and you can see them free on our platform here.

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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.

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