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Why Is Halozyme Therapeutics (HALO) Down 13.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Halozyme Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.
Halozyme reported a fourth-quarter 2025 adjusted loss of 24 cents per share against the Zacks Consensus Estimate of earnings of $2.15. The company had reported adjusted earnings of $1.26 per share in the year-ago quarter.
The year-over-year decline in earnings was due to an unfavorable impact of $2.42 per share related to acquired IPR&D expense for the Surf Bio acquisition in the fourth quarter of 2025.
However, total revenues in the fourth quarter increased 52% year over year to $451.8 million. Revenues beat the Zacks Consensus Estimate of $449 million.
Quarter in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $258 million in the fourth quarter, up 51% from the year-ago quarter’s level. This was mainly due to robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.
Royalty revenues, however, missed our model estimate of $259.1 million.
Product sales were $122.7 million in the fourth quarter, up 54.5% from the year-ago quarter’s level. Halozyme has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.
Product sales also missed our model estimate of $123.2 million.
Revenues under collaborative agreements were $71.1 million in the fourth quarter, increasing 47.5% on a year-over-year basis.
Adjusted EBITDA was $21.9 million in the reported quarter, compared with $195.8 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $145.4 million as of Dec. 31, 2025, compared with $702 million as of Sept. 30, 2025.
2026 Guidance
Halozyme reiterated its total revenue guidance for 2026, which it had provided in January 2026.
The company expects total revenues in the range of $1.71 billion to $1.81 billion for 2026, implying year-over-year growth of 22% to 30%. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Royalty revenues are anticipated in the range of $1.13-$1.17 billion, implying year-over-year growth of 30% to 35%.
Adjusted EBITDA is expected in the band of $1.125-$1.205 billion, implying a year-over-year surge of 71% to 83%.
Adjusted earnings are expected in the range of $7.75-$8.25 per share in 2026, implying growth of 87% to 99% year over year.
Halozyme’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.
On the fourth-quarter conference call, management stated that it expects royalty revenues in the first quarter of 2026 to be 5% to 10% lower than in the fourth quarter of 2025 due to annual contract rate adjustments. Total revenues are also projected to decline sequentially, as no milestone payments are expected in the first quarter of 2026.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in fresh estimates over the past two months.
VGM Scores
Currently, Halozyme Therapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Halozyme Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Halozyme Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Viking Therapeutics, Inc. (VKTX - Free Report) , a stock from the same industry, has gained 11.3%. The company reported its results for the quarter ended December 2025 more than a month ago.
Viking Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of 0%. EPS of -$1.38 for the same period compares with -$0.32 a year ago.
For the current quarter, Viking Therapeutics is expected to post a loss of $1.01 per share, indicating a change of -146.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viking Therapeutics. Also, the stock has a VGM Score of F.
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Why Is Halozyme Therapeutics (HALO) Down 13.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Halozyme Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.
Halozyme's Q4 Earnings Miss, Higher Royalties Drive Y/Y Revenues
Halozyme reported a fourth-quarter 2025 adjusted loss of 24 cents per share against the Zacks Consensus Estimate of earnings of $2.15. The company had reported adjusted earnings of $1.26 per share in the year-ago quarter.
The year-over-year decline in earnings was due to an unfavorable impact of $2.42 per share related to acquired IPR&D expense for the Surf Bio acquisition in the fourth quarter of 2025.
However, total revenues in the fourth quarter increased 52% year over year to $451.8 million. Revenues beat the Zacks Consensus Estimate of $449 million.
Quarter in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $258 million in the fourth quarter, up 51% from the year-ago quarter’s level. This was mainly due to robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.
Royalty revenues, however, missed our model estimate of $259.1 million.
Product sales were $122.7 million in the fourth quarter, up 54.5% from the year-ago quarter’s level. Halozyme has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.
Product sales also missed our model estimate of $123.2 million.
Revenues under collaborative agreements were $71.1 million in the fourth quarter, increasing 47.5% on a year-over-year basis.
Adjusted EBITDA was $21.9 million in the reported quarter, compared with $195.8 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $145.4 million as of Dec. 31, 2025, compared with $702 million as of Sept. 30, 2025.
2026 Guidance
Halozyme reiterated its total revenue guidance for 2026, which it had provided in January 2026.
The company expects total revenues in the range of $1.71 billion to $1.81 billion for 2026, implying year-over-year growth of 22% to 30%. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Royalty revenues are anticipated in the range of $1.13-$1.17 billion, implying year-over-year growth of 30% to 35%.
Adjusted EBITDA is expected in the band of $1.125-$1.205 billion, implying a year-over-year surge of 71% to 83%.
Adjusted earnings are expected in the range of $7.75-$8.25 per share in 2026, implying growth of 87% to 99% year over year.
Halozyme’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.
On the fourth-quarter conference call, management stated that it expects royalty revenues in the first quarter of 2026 to be 5% to 10% lower than in the fourth quarter of 2025 due to annual contract rate adjustments. Total revenues are also projected to decline sequentially, as no milestone payments are expected in the first quarter of 2026.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in fresh estimates over the past two months.
VGM Scores
Currently, Halozyme Therapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Halozyme Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Halozyme Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Viking Therapeutics, Inc. (VKTX - Free Report) , a stock from the same industry, has gained 11.3%. The company reported its results for the quarter ended December 2025 more than a month ago.
Viking Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of 0%. EPS of -$1.38 for the same period compares with -$0.32 a year ago.
For the current quarter, Viking Therapeutics is expected to post a loss of $1.01 per share, indicating a change of -146.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viking Therapeutics. Also, the stock has a VGM Score of F.