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Repligen (RGEN) Down 8.4% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Repligen (RGEN - Free Report) . Shares have lost about 8.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Repligen’s Earnings and Sales Surpass Q1 Estimates

Repligen’s first-quarter 2021 adjusted earnings per share of 68 cents beat the Zacks Consensus Estimate of 43 cents. The bottom line also came in higher than the year-ago earnings of 32 cents.

Moreover, total revenues of $142.8 million exceeded the Zacks Consensus Estimate of $116.2 million. Additionally, the top line improved 88% year over year (83% 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/divestitures, Repligen’s revenues grew 69% organically year over year in the first quarter of 2021.

Quarter in Detail

Product sales were up 87.7% year over year to $142.7 million in the first quarter.

Sales of Repligen’s base business (excluding COVID-19 related business) were up 31% year over year. Acquisitions made by the company during 2020 contributed 16% of revenue growth while COVID-related programs contributed 53% of revenue growth.

Adjusted gross margin was 59.3% in the first quarter, up 80 basis points year over year.

In the reported quarter, adjusted research and development expenses were $7.4 million, up 67.2% from the year-ago figure.

Adjusted selling, general and administrative expenses were $31.7 million, surging 45.6% year over year.

Adjusted operating income was $45.7 million, increasing 149% year over year.

As of Mar 31, 2021, Repligen had cash and cash equivalents worth $711.3 million compared with $717.3 million on Dec 31, 2020.

Raises 2021 Guidance

Repligen raised its guidance for 2021 revenues, adjusted earnings and certain other items on its first-quarter earnings call.

It expects revenues to be in the range of $565-$590 million, up from the previous guidance of $500-$525 million.

Anticipated revenues for 2021 indicates growth of 54 and 52 year over year on a reported and constant currency basis, respectively. Organic growth is estimated to be in the range of 42, up from the previous expectation of 26.

The company expects COVID-related programs to generate revenues in the range of $140-$160 million, up from the previous guidance of $90-$100 million. However, it continues to anticipate revenues from acquisitions, made in 2020, in the range of $37-$40 million.

Adjusted operating income is anticipated within $156-$162 million, an increase from the previous guidance of $134-$140 million. Adjusted net income is projected in the $126-$130 million band, up from the previous guided band of $106-$111 million.

Adjusted EPS is anticipated within $2.21-$2.28 per share, up from the previous guidance of $1.86-$1.94 per share.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 12.41% due to these changes.

VGM Scores

At this time, Repligen has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. 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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