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Is a Beat in Store for Repligen (RGEN) This Earnings Season?
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We expect Repligen Corporation (RGEN - Free Report) to beat on earnings when it reports second-quarter 2019 results.
Shares of Repligen have soared 67.4% so far this year against the industry’s decrease of 0.2%.
The company’s track record has been mixed so far, having delivered a positive earnings surprise in three of the last four quarters, missing expectations once. The average four-quarter beat is 1.92%. In the last reported quarter, Repligen came up with a positive surprise of 7.69%.
Let’s see, how things are shaping up for this quarter to be reported.
Factors to Consider
Repligen is a leading provider of advanced bioprocessing technologies and solutions used in the process of manufacturing biologic drugs. The company earns revenues from the sale of several products, which can be categorized mainly under three segments, namely Filtration, Chromatography and Protein products.
The company’s filtration products include KrosFlo hollow fiber (HF) TFF membranes and modules, ProConnex single-use flow path connectors, flat sheet TFF cassettes and hardware, and XCell alternating tangential flow (ATF) devices and related consumables. The franchise has been performing well, led by the acceleration in ATF sales.
The chromatography franchise comprises products used in the downstream purification and quality control of biological drugs, led by the OPUS packed chromatography column line.
The protein product line generates revenues through the sale of Protein A ligands and growth factors. This too performed well in the first quarter with strength in growth factors and a solid uptick in ligand.
All the aforementioned three franchises grew both sequentially and on a year-over-year basis. We expect this positive trend to continue in the upcoming quarterly results.
The company did not give a quarterly guidance but raised its annual projection for revenues to $235-$241 million for 2019.
In April this year, Repligen entered into an agreement to acquire the privately held C Technologies, Inc. to add a franchise to process analytics with market leading technology and protein concentration measurement using VPE [ph] platforms. We expect management to provide an update on the same during second-quarter investors’ call.
Why a Likely Positive Surprise?
Our proven model indicates that Repligen is likely to beat on earnings this to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Repligen has an Earnings ESP of +29.31%, representing the percentage difference between the Most Accurate Estimate (30 cents) and the Zacks Consensus Estimate (23 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Repligen sports a Zacks Rank of 1, which increases the predictive power of ESP. Thus, the combination of a positive ESP and a favorable Zacks Rank makes us reasonably confident about a likely positive earnings surprise.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some other biotech stocks worth considering as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Alexion Pharmaceuticals, Inc. is a Zacks #1 Ranked player and has an Earnings ESP of +3.10%. The company is scheduled to release second-quarter results on Jul 24, before the market opens. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences, Inc. (GILD - Free Report) is scheduled to release second-quarter results on Jul 30, after the market closes. The company has an Earnings ESP of +3.69% and a Zacks Rank #2.
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +5.76%. The company is scheduled to release second-quarter results on Aug 6, before the market opens.
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Is a Beat in Store for Repligen (RGEN) This Earnings Season?
We expect Repligen Corporation (RGEN - Free Report) to beat on earnings when it reports second-quarter 2019 results.
Shares of Repligen have soared 67.4% so far this year against the industry’s decrease of 0.2%.
The company’s track record has been mixed so far, having delivered a positive earnings surprise in three of the last four quarters, missing expectations once. The average four-quarter beat is 1.92%. In the last reported quarter, Repligen came up with a positive surprise of 7.69%.
Let’s see, how things are shaping up for this quarter to be reported.
Factors to Consider
Repligen is a leading provider of advanced bioprocessing technologies and solutions used in the process of manufacturing biologic drugs. The company earns revenues from the sale of several products, which can be categorized mainly under three segments, namely Filtration, Chromatography and Protein products.
The company’s filtration products include KrosFlo hollow fiber (HF) TFF membranes and modules, ProConnex single-use flow path connectors, flat sheet TFF cassettes and hardware, and XCell alternating tangential flow (ATF) devices and related consumables. The franchise has been performing well, led by the acceleration in ATF sales.
The chromatography franchise comprises products used in the downstream purification and quality control of biological drugs, led by the OPUS packed chromatography column line.
The protein product line generates revenues through the sale of Protein A ligands and growth factors. This too performed well in the first quarter with strength in growth factors and a solid uptick in ligand.
All the aforementioned three franchises grew both sequentially and on a year-over-year basis. We expect this positive trend to continue in the upcoming quarterly results.
The company did not give a quarterly guidance but raised its annual projection for revenues to $235-$241 million for 2019.
In April this year, Repligen entered into an agreement to acquire the privately held C Technologies, Inc. to add a franchise to process analytics with market leading technology and protein concentration measurement using VPE [ph] platforms. We expect management to provide an update on the same during second-quarter investors’ call.
Why a Likely Positive Surprise?
Our proven model indicates that Repligen is likely to beat on earnings this to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Repligen has an Earnings ESP of +29.31%, representing the percentage difference between the Most Accurate Estimate (30 cents) and the Zacks Consensus Estimate (23 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Repligen sports a Zacks Rank of 1, which increases the predictive power of ESP. Thus, the combination of a positive ESP and a favorable Zacks Rank makes us reasonably confident about a likely positive earnings surprise.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Repligen Corporation Price and EPS Surprise
Repligen Corporation price-eps-surprise | Repligen Corporation Quote
Other Stocks That Warrant a Look
Here are some other biotech stocks worth considering as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Alexion Pharmaceuticals, Inc. is a Zacks #1 Ranked player and has an Earnings ESP of +3.10%. The company is scheduled to release second-quarter results on Jul 24, before the market opens. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences, Inc. (GILD - Free Report) is scheduled to release second-quarter results on Jul 30, after the market closes. The company has an Earnings ESP of +3.69% and a Zacks Rank #2.
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +5.76%. The company is scheduled to release second-quarter results on Aug 6, before the market opens.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>