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Repligen (RGEN) Beats on Q3 Earnings, Lifts 2019 Guidance

Zacks Equity Research

Repligen Corporation RGEN reported third-quarter 2019 earnings per share of 26 cents, beating the Zacks Consensus Estimate of 20 cents. The figure also surpassed the year-ago earnings of 20 cents.

Also, the company’s total revenues of $69.4 million surpassed the Zacks Consensus Estimate of $66 million. Additionally, the top line surged 40% year over year (42% at constant currency) on strong performance by the filtration and chromatography product franchises.

We remind investors that in May 2019, Repligen closed the previously announced buyout of the privately held bioprocess analytics company C Technologies for a $240-million cash-and-stock deal. Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 28% organically year over year.

Repligen earns revenues from the sale of several products, which can be categorized under three segments, namely Filtration, Chromatography and Protein products.

Shares of Repligen were up 3.1% on Thursday, probably on the back of encouraging earnings results and updated sales guidance issued by the company. In fact, the stock has soared 50.7% so far this year against the industry’s decline of 0.9%.

 

Quarter in Detail

In the reported quarter, adjusted research and development expenses were $5.1 million, up 41.7% from the year-ago figure.

Adjusted selling, general and administrative expenses were $18.7 million, reflecting an increase of 48.4% year over year.

As of Sep 30, 2019, Repligen had cash and cash equivalents of $513.5 million compared with $ 208.9 million at the end of Jun 30, 2019.

2019 Guidance

Repligen raised its previously issued annual forecast for revenues and earnings.

The company expects sales in the range of $267-$270 million, implying organic growth of 31-32%. Previously, revenues were expected in the range of $ 264-$268 million, indicating organic revenue growth of 29-31%.

C Technologies is expected to add $16-$17 million to Repligen’s revenues in about seven months of ownership in 2019.

Adjusted net income is projected in the range of $50-$52 million, lifted from the previous guidance of $47-$49 million. Adjusted income from operations is anticipated in the band of $62-$64 million, upped from $60-$62 million expected previously.

Adjusted EPS is envisioned in the range of $1-$1.04, raised from the previous view of 94-98 cents.

Repligen Corporation Price, Consensus and EPS Surprise

Repligen Corporation Price, Consensus and EPS Surprise

Repligen Corporation price-consensus-eps-surprise-chart | Repligen Corporation Quote

Zacks Rank & Stocks to Consider

Repligen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks from the healthcare sector include Anika Therapeutics Inc. ANIK, Acorda Therapeutics, Inc. ACOR and BeiGene, Ltd. BGNE, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Anika’s earnings estimates have been revised 16% upward for 2019 and 19.1% for 2020 over the past 60 days. The stock has skyrocketed 109.4% year to date.

Acorda’s loss per share estimates have been narrowed 20.4% for 2019 and 43% for 2020 over the past 60 days.

BeiGene’s loss per share estimates have been narrowed 2.2% for 2019 and 0.3% for 2020 over the past 60 days.

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