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Repligen (RGEN) Q3 Earnings and Sales Beat, 2021 View Up

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Repligen Corporation (RGEN - Free Report) announced third-quarter 2021 adjusted earnings per share of 78 cents, beating the Zacks Consensus Estimate of 64 cents. Earnings also rose 95% year over year.

Total revenues of $178.2 million also surpassed the Zacks Consensus Estimate of $164.7 million. Sales rose 89% year over year (88% 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/divestitures, Repligen’s organic revenues grew 77% year over year for third-quarter 2021.

Quarter in Detail

Product sales were up 89.5% year over year to $178.2 million for the third quarter.

Sales of Repligen’s base business (excluding COVID-related business) were up 49% year over year while COVID-related sales grew 247%. Acquisitions made by the company during 2020 and 2021 added 12% to revenue growth, while its COVID-19 vaccine-related programs contributed 40%. Revenues from the filtration franchise more than doubled for the quarter from the year-ago period. The company noted that the gene-therapy business rose 50% for the quarter.

Adjusted gross margin was 58.3% for the third quarter, up 30 basis points (bps) year over year.

For the reported quarter, adjusted research and development expenses were $8.8 million, up 98.4% from the year-ago figure.

Adjusted selling, general and administrative expenses were $38.1million, surging 63.6% year over year.

Adjusted operating income was $57 million, increasing 112% year over year. Adjusted operating margin was 32%, up 340 bps year over year.

As of Sep 30, 2021, Repligen had cash and cash equivalents worth $621.1 million compared with $734.3 million on Jun 30, 2021.

Raised 2021 Guidance

Repligen raised its guidance for 2021 revenues, adjusted earnings and certain other items on the first-quarter earnings call. The financial guidance has been updated taking into account the impact of the acquisitions made by the company during the quarter, namely Avitide Inc and Polymem in September and July, respectively.

It now expects revenues in the range of $655-$665 million, up from the previous guidance of $625-$645 million due to expectations for higher revenues from the base business. The Zacks Consensus Estimate for revenues stands at $641.8 million.

Repligen’s revenue estimates for 2021 indicate growth of 79-82% and 77-80% year over year on a reported and constant-currency basis, respectively. Organic growth is estimated in the range of 65-68%, up from the previous expectation of 57-62%.

The company now expects COVID-related programs to generate revenues in the range of $175-$180 million, whose lower limit has been raised from the previous projection of $170-$180 million.

Adjusted EPS is anticipated within $2.86-$2.91 per share, up from the previous guided range of $2.71-$2.78. The Zacks Consensus Estimate for earnings stands at $2.76 per share.

Adjusted operating income is anticipated within $204-$208 million, which indicates an increase from the previous guided range of 192-$197 million. Adjusted net income is projected in the $163-$166 million band, up from the previous expectation of $154-$158 million.

Shares of Repligen were up 7% on Oct 28, attributable to strong third-quarter results and increased guidance. The company’s shares have gained 51.3% so far this year against the industry's decrease of 9.8%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Currently, Repligen holds a Zacks Rank #3 (Hold). Other top-ranked stocks in the same sector include Alkermes (ALKS - Free Report) , Regeneron (REGN - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) . While Alkermes and Regeneron each sport a Zacks Rank #1 (Strong Buy), Vertex currently carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes’s earnings per share estimates for 2022 have increased from $1.21 to $1.27 in the past 60 days. The stock has rallied 45.1% in the year so far.

Regeneron’s earnings per share estimates for 2021 have increased from $54.15 to $62.36 in the past 60 days. The same for 2022 has risen from $44.11 to $46.69 over the same period. The stock has rallied 29.4% in the year so far.

Vertex’s earnings per share estimates for 2021 have increased from $12.37 to $12.43 in the past 60 days. The same for 2022 has risen from $13.13 to $13.16 over the same period.