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Repligen (RGEN) Down 8.8% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Repligen (RGEN - Free Report) . Shares have lost about 8.8% 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 Q2 Earnings and Sales Beat Estimates, Stock Up
Repligen announced second-quarter 2022 adjusted earnings per share (of 91 cents, beating the Zacks Consensus Estimate of 72 cents. Earnings also rose 15.2% year over year.
Total revenues of $207.6 million also surpassed the Zacks Consensus Estimate of $189 million. Sales rose 27.4% year over year (32% in constant currency), driven by major growth in the company’s filtration and chromatography franchises and robust demand across its core monoclonal antibody and gene therapy markets.
Excluding the impact of currency and acquisitions/divestitures, Repligen’s organic revenues grew 29% year over year for second-quarter 2022.
Quarter in Detail
During the quarter, Repligen’s base business accounted for 80% of revenues while COVID-related sales constituted 17%. The remaining growth can be attributed to inorganic revenues from the acquisitions made during 2021.
Repligen’s base business can be categorized mainly under four franchises, namely filtration, chromatography, protein and process analytics.
Sales of the company’s overall base business registered growth of 41% year over year. The base business excludes COVID-related revenue and inorganic acquisition revenue from 2021 acquisitions
Revenues in the filtration business were up more than 40% year over year in the second quarter. In the chromatography segment, Repligen witnessed a 50% year-over-year surge in demand for its large-scale columns. Repligen’s process analytics franchises performed well, driven by an increase of 40% year over year sales of FlowVPX. Revenue growth of the protein franchise was down from the year-ago quarter’s level due to tough competition for both ligands and growth factors
The gene-therapy business was up more than 70% during the quarter. The company’s cell and gene therapy accounted for 15% of the total revenues in the reported quarter.
Adjusted gross margin was 58.7% in the second quarter, down 330 basis points (bps) year over year, compared to 62% in the year-ago quarter.
For the reported quarter, adjusted research and development expenses were $10.23 million, up 27.5% from the year-ago quarter’s figure.
Adjusted selling, general and administrative expenses were $46.09 million, surging 26.6% year over year.
Adjusted operating income was $65.6 million, increasing 16% year over year. Adjusted operating margin was 31.6%, down 310 bps year over year.
As of Jun 30, 2022, Repligen had cash and cash equivalents worth $596.5 million compared with $584.6 million on Mar 31, 2022.
Updated 2022 Guidance
Repligen raised its sales as well as profit guidance for 2022.
Repligen raised the revenue guidance for the company and now expects revenues in the range of $790-$810 million, up from the earlier projected levels of $770-$800 million. The new revenue guidance indicates overall revenue growth of 18-21% year over year on a reported basis, while 22-25% growth on a constant-currency basis. Organic growth is now expected in the range of 19-22%, up from the previously expected range of 14-18%.
Repligen now expects base business revenues to increase 31-33%, up from the previously-issued guidance of 24-31%
Repligen anticipates increased projected demand for products sold under its base business. However, RGEN expects the rise in revenue to be offset by dampened COVID-related sales as a result of slowing vaccination rates.
Adjusted net income is now projected in the $180-$184 million band, up from the earlier guidance of $177-$182 million. Adjusted operating income is now anticipated within $234-$239 million, up from the earlier projected $225-$231 million band.
Adjusted EPS is anticipated within $3.13-$3.20, suggesting an increase from the earlier guidance of $3.07-$3.15.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Repligen has a nice Growth Score of B, though it is lagging a lot 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Repligen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Repligen (RGEN) Down 8.8% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Repligen (RGEN - Free Report) . Shares have lost about 8.8% 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 Q2 Earnings and Sales Beat Estimates, Stock Up
Repligen announced second-quarter 2022 adjusted earnings per share (of 91 cents, beating the Zacks Consensus Estimate of 72 cents. Earnings also rose 15.2% year over year.
Total revenues of $207.6 million also surpassed the Zacks Consensus Estimate of $189 million. Sales rose 27.4% year over year (32% in constant currency), driven by major growth in the company’s filtration and chromatography franchises and robust demand across its core monoclonal antibody and gene therapy markets.
Excluding the impact of currency and acquisitions/divestitures, Repligen’s organic revenues grew 29% year over year for second-quarter 2022.
Quarter in Detail
During the quarter, Repligen’s base business accounted for 80% of revenues while COVID-related sales constituted 17%. The remaining growth can be attributed to inorganic revenues from the acquisitions made during 2021.
Repligen’s base business can be categorized mainly under four franchises, namely filtration, chromatography, protein and process analytics.
Sales of the company’s overall base business registered growth of 41% year over year. The base business excludes COVID-related revenue and inorganic acquisition revenue from 2021 acquisitions
Revenues in the filtration business were up more than 40% year over year in the second quarter. In the chromatography segment, Repligen witnessed a 50% year-over-year surge in demand for its large-scale columns. Repligen’s process analytics franchises performed well, driven by an increase of 40% year over year sales of FlowVPX. Revenue growth of the protein franchise was down from the year-ago quarter’s level due to tough competition for both ligands and growth factors
The gene-therapy business was up more than 70% during the quarter. The company’s cell and gene therapy accounted for 15% of the total revenues in the reported quarter.
Adjusted gross margin was 58.7% in the second quarter, down 330 basis points (bps) year over year, compared to 62% in the year-ago quarter.
For the reported quarter, adjusted research and development expenses were $10.23 million, up 27.5% from the year-ago quarter’s figure.
Adjusted selling, general and administrative expenses were $46.09 million, surging 26.6% year over year.
Adjusted operating income was $65.6 million, increasing 16% year over year. Adjusted operating margin was 31.6%, down 310 bps year over year.
As of Jun 30, 2022, Repligen had cash and cash equivalents worth $596.5 million compared with $584.6 million on Mar 31, 2022.
Updated 2022 Guidance
Repligen raised its sales as well as profit guidance for 2022.
Repligen raised the revenue guidance for the company and now expects revenues in the range of $790-$810 million, up from the earlier projected levels of $770-$800 million. The new revenue guidance indicates overall revenue growth of 18-21% year over year on a reported basis, while 22-25% growth on a constant-currency basis. Organic growth is now expected in the range of 19-22%, up from the previously expected range of 14-18%.
Repligen now expects base business revenues to increase 31-33%, up from the previously-issued guidance of 24-31%
Repligen anticipates increased projected demand for products sold under its base business. However, RGEN expects the rise in revenue to be offset by dampened COVID-related sales as a result of slowing vaccination rates.
Adjusted net income is now projected in the $180-$184 million band, up from the earlier guidance of $177-$182 million. Adjusted operating income is now anticipated within $234-$239 million, up from the earlier projected $225-$231 million band.
Adjusted EPS is anticipated within $3.13-$3.20, suggesting an increase from the earlier guidance of $3.07-$3.15.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Repligen has a nice Growth Score of B, though it is lagging a lot 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Repligen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.