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Why Is Repligen (RGEN) Down 0.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Repligen (RGEN - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Repligen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Repligen Beats on Q2 Earnings and Sales
Repligen delivered second-quarter 2020 earnings per share of 42 cents, beating the Zacks Consensus Estimate of 28 cents. The bottom line also surpassed the year-ago earnings of 31 cents.
Moreover, total revenues of $87.5 million exceeded the Zacks Consensus Estimate of $78 million. Additionally, the top line improved 24% year over year (25% at constant currency) on strong performances by all the product franchises with proteins being the major driver.
Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 19% organically year over year in the second quarter of 2020.
Quarter in Detail
Adjusted gross margin was 58.2% in the second quarter driven by robust sales volumes across all franchisees.
In the reported quarter, adjusted research and development expenses were $4.1 million, down 19.6% from the year-ago figure.
Adjusted selling, general and administrative expenses were $21.2 million, surging 30.8% year over year.
Adjusted operating income was $25.5 million, increasing 27% year over year.
As of Jun 30, 2020, Repligen had cash and cash equivalents worth $560.4 million compared with $529.5 million on Mar 31, 2020.
2020 Guidance
Based on strong performance of all the product franchisees, Repligen raised its revenue guidance for the full year.
The company now expects total revenues in the range of $332-$340 million for the current year compared to the earlier projection of $309-$319 million, implying organic growth of 18.
Adjusted net income is projected in the $66-$69 million band, indicating an increase from the previous guidance of $58-$61 million. Adjusted operating income is anticipated within $81-$84 million, suggesting a rise from the past view of $72-$76 million.
Adjusted EPS is anticipated within $1.24-$1.29, up from the prior guidance of $1.09-$1.14 for 2020.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 6.98% due to these changes.
VGM Scores
At this time, Repligen has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Repligen has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Repligen (RGEN) Down 0.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Repligen (RGEN - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Repligen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Repligen Beats on Q2 Earnings and Sales
Repligen delivered second-quarter 2020 earnings per share of 42 cents, beating the Zacks Consensus Estimate of 28 cents. The bottom line also surpassed the year-ago earnings of 31 cents.
Moreover, total revenues of $87.5 million exceeded the Zacks Consensus Estimate of $78 million. Additionally, the top line improved 24% year over year (25% at constant currency) on strong performances by all the product franchises with proteins being the major driver.
Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 19% organically year over year in the second quarter of 2020.
Quarter in Detail
Adjusted gross margin was 58.2% in the second quarter driven by robust sales volumes across all franchisees.
In the reported quarter, adjusted research and development expenses were $4.1 million, down 19.6% from the year-ago figure.
Adjusted selling, general and administrative expenses were $21.2 million, surging 30.8% year over year.
Adjusted operating income was $25.5 million, increasing 27% year over year.
As of Jun 30, 2020, Repligen had cash and cash equivalents worth $560.4 million compared with $529.5 million on Mar 31, 2020.
2020 Guidance
Based on strong performance of all the product franchisees, Repligen raised its revenue guidance for the full year.
The company now expects total revenues in the range of $332-$340 million for the current year compared to the earlier projection of $309-$319 million, implying organic growth of 18.
Adjusted net income is projected in the $66-$69 million band, indicating an increase from the previous guidance of $58-$61 million. Adjusted operating income is anticipated within $81-$84 million, suggesting a rise from the past view of $72-$76 million.
Adjusted EPS is anticipated within $1.24-$1.29, up from the prior guidance of $1.09-$1.14 for 2020.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 6.98% due to these changes.
VGM Scores
At this time, Repligen has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Repligen has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.