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Results: Repligen Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

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  • RGEN

As you might know, Repligen Corporation (NASDAQ:RGEN) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.6% to hit US$76m. Repligen also reported a statutory profit of US$0.18, which was an impressive 57% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Repligen

NasdaqGS:RGEN Past and Future Earnings May 8th 2020
NasdaqGS:RGEN Past and Future Earnings May 8th 2020

Following the latest results, Repligen's ten analysts are now forecasting revenues of US$316.1m in 2020. This would be a notable 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 52% to US$0.70. In the lead-up to this report, the analysts had been modelling revenues of US$309.2m and earnings per share (EPS) of US$0.56 in 2020. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Repligen 16% to US$132 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Repligen at US$150 per share, while the most bearish prices it at US$98.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Repligen's revenue growth will slow down substantially, with revenues next year expected to grow 11%, compared to a historical growth rate of 29% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% next year. Even after the forecast slowdown in growth, it seems obvious that Repligen is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Repligen's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Repligen going out to 2024, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Repligen you should know about.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.