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Halozyme Therapeutics (HALO) Up 8.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Halozyme's Q1 Earnings Beat, Revenues Lag Estimates
Halozyme reported first-quarter 2024 adjusted earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents. The company had recorded earnings of 47 cents per share in the year-ago period.
Total revenues increased 21% year over year to $195.9 million in the first quarter. The top line was driven by higher royalty payments from J&J for subcutaneous Darzalex and Roche for Phesgo, as well as increased milestone payments from collaboration partners.
Revenues, however, missed the Zacks Consensus Estimate of $202 million.
Quarter in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $120.6 million in the first quarter, up 21% from the year-ago quarter’s level. This was mainly due to robust demand for Darzalex and Phesgo. Royalty revenues accounted for nearly 61.5% of the company’s total revenues in the reported quarter. Royalty revenues beat our model estimate of $114.3 million.
Product sales came in at $58.6 million, down 3.6% from the year-ago quarter figure. Product sales missed our model estimate of $71.1 million.
Revenues under collaborative agreements were $16.7 million in the first quarter, up from $1.7 million reported in the year-ago quarter.
Adjusted EBITDA was $115.7 million in the first quarter, reflecting a 55.7% increase from the prior-year quarter.
Halozyme had cash, cash equivalents and marketable securities of $463.5 million as of Mar 31, 2024, compared with $336 million as of Dec 31, 2023.
2024 Guidance
Halozyme reiterated its guidance for 2024 provided earlier this year.
The company still expects total revenues in the range of $915-$985 million in 2024, implying year-over-year growth of 10% to 19% on higher royalty revenues, collaboration revenues and growth in product sales from Xyosted.
Revenues from royalties are anticipated in the range of $500-$525 million.
Adjusted EBITDA is expected in the range of $535-$585 million, implying year-over-year growth of 26% to 37%.
The company expects adjusted earnings in the range of $3.55-$3.90 per share, indicating an improvement of 28% to 41% year over year. Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Halozyme Therapeutics has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Moderna (MRNA - Free Report) , has gained 27% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Moderna reported revenues of $167 million in the last reported quarter, representing a year-over-year change of -91%. EPS of -$3.07 for the same period compares with $0.19 a year ago.
For the current quarter, Moderna is expected to post a loss of $3.46 per share, indicating a change of +4.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moderna. Also, the stock has a VGM Score of F.
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Halozyme Therapeutics (HALO) Up 8.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Halozyme's Q1 Earnings Beat, Revenues Lag Estimates
Halozyme reported first-quarter 2024 adjusted earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents. The company had recorded earnings of 47 cents per share in the year-ago period.
Total revenues increased 21% year over year to $195.9 million in the first quarter. The top line was driven by higher royalty payments from J&J for subcutaneous Darzalex and Roche for Phesgo, as well as increased milestone payments from collaboration partners.
Revenues, however, missed the Zacks Consensus Estimate of $202 million.
Quarter in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $120.6 million in the first quarter, up 21% from the year-ago quarter’s level. This was mainly due to robust demand for Darzalex and Phesgo. Royalty revenues accounted for nearly 61.5% of the company’s total revenues in the reported quarter. Royalty revenues beat our model estimate of $114.3 million.
Product sales came in at $58.6 million, down 3.6% from the year-ago quarter figure. Product sales missed our model estimate of $71.1 million.
Revenues under collaborative agreements were $16.7 million in the first quarter, up from $1.7 million reported in the year-ago quarter.
Adjusted EBITDA was $115.7 million in the first quarter, reflecting a 55.7% increase from the prior-year quarter.
Halozyme had cash, cash equivalents and marketable securities of $463.5 million as of Mar 31, 2024, compared with $336 million as of Dec 31, 2023.
2024 Guidance
Halozyme reiterated its guidance for 2024 provided earlier this year.
The company still expects total revenues in the range of $915-$985 million in 2024, implying year-over-year growth of 10% to 19% on higher royalty revenues, collaboration revenues and growth in product sales from Xyosted.
Revenues from royalties are anticipated in the range of $500-$525 million.
Adjusted EBITDA is expected in the range of $535-$585 million, implying year-over-year growth of 26% to 37%.
The company expects adjusted earnings in the range of $3.55-$3.90 per share, indicating an improvement of 28% to 41% year over year. Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Halozyme Therapeutics has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Moderna (MRNA - Free Report) , has gained 27% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Moderna reported revenues of $167 million in the last reported quarter, representing a year-over-year change of -91%. EPS of -$3.07 for the same period compares with $0.19 a year ago.
For the current quarter, Moderna is expected to post a loss of $3.46 per share, indicating a change of +4.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moderna. Also, the stock has a VGM Score of F.