A month has gone by since the last earnings report for Repligen (RGEN Quick QuoteRGEN - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Repligen due for a pullback? 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 drivers.

Repligen’s Earnings and Sales Surpass Q2 Estimates

Repligen announced second-quarter 2021 adjusted earnings per share of 79 cents, beating the Zacks Consensus Estimate of 53 cents. Earnings also rose 88.1% year over year.

Total revenues of $163 million surpassed the Zacks Consensus Estimate of $145.17 million. Sales rose 86% year over year (81% in constant currency) on robust demand across all franchises, especially the filtration franchise, and higher COVID-related sales.

Excluding the impact of currency and acquisitions/divestures, Repligen’s organic revenues grew 69% year over year in second-quarter 2021.

Quarter in Detail

Product sales were up 86.3% year over year to $162.9 million in the second quarter.

Sales of Repligen’s base business (excluding COVID-related business) were up 35% year over year. Acquisitions made by the company during 2020 added 15% to revenue growth while its COVID-19 vaccine-related programs contributed 49%. Revenues from filtration franchises more than doubled in first-half 2021.

Adjusted gross margin was 62% for the second quarter, up 380 basis points (bps) year over year.

For the reported quarter, adjusted research and development expenses were $8.03 million, up 93.6% from the year-ago figure.

Adjusted selling, general and administrative expenses were $36.4 million, surging 71.6% year over year.

Adjusted operating income was $56.6 million, increasing 122% year over year. Adjusted operating margin was 34.7%, up 550 bps year over year.

As of Jun 30, 2021, Repligen had cash and cash equivalents worth $734.3 million compared with $711.3 million on Mar 31, 2021.

Raised 2021 Guidance

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

It now expects revenues in the range of $625-$645 million, up from the previous guidance of $565-$590 million due to expectations for higher COVID-related revenues.

Anticipated revenues for 2021 indicate growth of 71-76% and 68-73% year over year on a reported and constant-currency basis, respectively. Organic growth is estimated in the range of 57-62%, up from the previous expectation of 42-49%.

The company now expects COVID-related programs to generate revenues in the range of $170-$180 million, up from the previous guided range of $140-$160 million.

Adjusted EPS is anticipated within $2.71-$2.78 per share, up from the previous guided range of $2.21-$2.28.

Adjusted operating income is anticipated within $192-$197 million, which implies an increase from the previously guided range of $156-$162 million. Adjusted net income is projected in the $154-$158 million band, up from the previous expectation of $126-$130 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 23.87% due to these changes.

VGM Scores

Currently, Repligen has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, 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 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.