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Repligen (RGEN) Stock Down Despite Q4 Earnings & Sales Beat

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Repligen Corporation RGEN reported fourth-quarter 2019 earnings per share of 20 cents, beating the Zacks Consensus Estimate of 18 cents. The figure also surpassed the year-ago earnings of 19 cents.

Moreover, total revenues of $69.5 million exceeded the Zacks Consensus Estimate of $68 million. Additionally, the top line surged 34% year over year (35% at constant currency) on strong performances by the filtration and chromatography product franchises.

We remind investors that last May, Repligen acquired the privately held bioprocess analytics company C Technologies for a $240-million cash-and-stock deal. Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 21% organically year over year in the fourth quarter.

On the fourth-quarter conference call, management stated that within the seven months of its ownership, revenues from C Technologies products totaled $16.4 million, in line with the company’s expectation.

Despite earnings and sales topping expectations, shares of Repligen were down 7.4% on Thursday. However, the stock has soared 71.8% in the past year against the industry’s decline of 1.8%.

Quarter in Detail

In the reported quarter, adjusted research and development expenses were $4.9 million, up 63.3% from the year-ago figure.

Adjusted selling, general and administrative expenses were $22.2 million, surging 54.2% year over year.

Adjusted gross margin was 57.2%, reflecting a 240-bps improvement compared from the 2018-level. Adjusted operating income was $12.7 million, reflecting an increase of 15% year over year.

As of Dec 31, 2019, Repligen had cash and cash equivalents worth $528.4 million compared with $513.5 million on Sep 30, 2019.

Full-Year Results

For 2019, Repligen generated revenues of $ 270.2 million, up 39% year over year (41% at constant currency) with organic growth of 33%.

Adjusted earnings per share of $1.07 were higher than the year-ago earnings of $0.66.

2020 Guidance

Repligen expects total revenues in the range of $309-$319 million, implying an organic growth of 10-14%.

Adjusted net income is projected in the range of $57-$60 million while adjusted operating income is anticipated in the band of $70-$74 million.

Adjusted EPS is anticipated within $1.07-$1.12 for 2020.

Repligen Corporation Price, Consensus and EPS Surprise

Zacks Rank & Other Stocks to Consider

Repligen currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the healthcare sector include Aduro Biotech, Inc. ADRO, Vericel Corporation VCEL and Oncolytics Biotech Inc. ONCY, all sporting the same top Zacks Rank as Repligen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aduro’s loss per share estimates have been narrowed 10.5% for 2020 over the past 60 days.

Vericel’s earnings estimates have been revised 112.5% upward for 2020 over the past 60 days.

Oncolytics’ loss per share estimates have been narrowed 11.9% for 2020 over the past 60 days. The stock has gained 7.8% in the past year.

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