Back to top

Image: Bigstock

Repligen (RGEN) Q4 Earnings & Sales Top, 2021 Outlook Bright

Read MoreHide Full Article

Repligen Corporation (RGEN - Free Report) delivered fourth-quarter 2020 adjusted earnings per share of 52 cents, beating the Zacks Consensus Estimate of 31 cents. The bottom line also came in higher than the year-ago earnings of 20 cents.

Moreover, total revenues of $108.6 million exceeded the Zacks Consensus Estimate of $93.89 million. Additionally, the top line improved 56% year over year (53% in constant currency) on robust demand across all franchises, especially from COVID-19 vaccine and therapeutic related programs.

Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 47% organically year over year in the fourth quarter of 2020.

Shares of Repligen were up 4.4% on Feb 24 following the strong fourth-quarter results. In fact, the company’s shares have surged 153.1% in the past year compared with the industry’s increase of 10.9%.

Quarter in Detail

Repligen earns its revenues from the sale of several products, which can be categorized mainly under four segments, namely filtration, chromatography, protein and process analytics.

Sales from filtration business were up 60% organically from the year-ago period. Chromatography business sales increased more than 20% year over year. Sales growth of proteins franchise were also strong.

Adjusted gross margin was 56.3% in the fourth quarter.

In the reported quarter, adjusted research and development expenses were $6.7 million, up 36.4% from the year-ago figure.

Adjusted selling, general and administrative expenses were $27.2 million, surging 22.5% year over year.

Adjusted operating income was $27.3 million, increasing 115% year over year.

As of Dec 31, 2020, Repligen had cash and cash equivalents worth $717.3 million compared with $553.3 million on Sep 30, 2020.

Full-Year Results

Repligen reported revenues of $366.3 million in 2020, up 35.6% year over year on a reported basis. Revenues was up 35% at constant currency and 29% organically. The company’s adjusted earnings in 2020 were $1.65 per share compared with $1.07 per share in the year-ago period.

2021 Guidance

Repligen issued guidance for 2021 revenues, adjusted earnings and certain other items on its fourth-quarter earnings call. The company expects the three acquisitions it completed last year, a very strong order load and COVID-19 tailwinds to accelerate growth in 2021.

It expects revenues to be in the range of $500-$525 million, indicating overall revenue growth of 37%-43% year over year on a reported as well as constant currency basis. Organic growth will be in the range of 26%-33%. The Zacks Consensus Estimates for revenues stand at $460.8 million.

The company expects COVID-related programs to generate revenues in the range of $90-$100 million, almost double year over year. It expects acquisitions to add $37-$40 million to total revenues in 2021.

Adjusted net income is projected in the $106-$111 million band. Adjusted operating income is anticipated within $134-$140 million.

Adjusted EPS is anticipated within $1.86-$1.94 per share. The Zacks Consensus Estimates for earnings stands at $1.66 per share.

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 & Other Stocks to Consider

Currently, Repligen is a Zacks Rank #2 (Buy) stock.

Some other top-ranked stocks from the biotech sector include Moderna, Inc. (MRNA - Free Report) , Lexicon Pharmaceuticals, Inc. (LXRX - Free Report) and Dynavax Technologies (DVAX - Free Report) . While Moderna sports a Zacks Rank #1 (Strong Buy), Lexicon and Dynavax carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Moderna’s earnings per share estimates have moved up from $9.45 to $14.74 for 2021 in the past 60 days. The stock has soared 396.5% in the past year.

Lexicon’s loss per share estimates narrowed from 66 cents to 17 cents for 2021 in the past 60 days. The company delivered an earnings surprise of 21.72%, on average, in the last four quarters. The stock has risen 171.3% in the past year.

Dynavax’s loss per share estimates have narrowed from 45 cents to 17 cents for 2021 in the past 60 days. The stock has risen 118.1% in the past year.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>