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Repligen (RGEN) Down 13.1% 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 13.1% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Repligen's Q2 Earnings & Revenues Meet Estimates
Repligen reported second-quarter 2024 adjusted earnings per share of 33 cents, which came in line with the Zacks Consensus Estimate. The company had recorded adjusted earnings of 53 cents per share in the year-ago quarter.
Total revenues were $154 million, down 3% year over year on a reported basis. Excluding the impact of acquisition revenues and currency exchange, revenues declined 5% year over year organically. Revenues were also in line with the Zacks Consensus Estimate.
The year-over-year decrease in total revenues can be attributed to the absence of COVID-related revenues and the expected decrease in revenues from protein franchisees.
Quarter in Detail
Product revenues were $154 million, down 3.2% from the year-ago period. Royalty and other revenues were $0.04 million, almost flat year over year.
Repligen’s base business revenues of $149.6 million declined 5% year over year, owing to the anticipated decline in revenues from the proteins business.
The company’s base business can be categorized under four franchises — filtration, chromatography, protein and process analytics.
Revenues from the chromatography business improved 10% on a sequential basis. Repligen believes that the franchisee is witnessing signs of recovery as orders keep gaining traction.
The filtration franchise’s sales grew almost 10% year over year, excluding non-COVID filtration revenues, driven by the success of ATF Tangenx flat sheet cassettes and systems.
Revenues in the protein franchise have been declining in recent quarters and the company believes that it will continue to be the same in the remainder of 2024. The company expects the protein franchise to deliver $67-$72 million in revenues in 2024.
Despite a slow start, RGEN believes that the analytics business unit is picking up pace in generating revenues.
Revenues from the company’s new modalities business, which includes cell and gene therapy and mRNA, were up more than 5% year on year in the second quarter.
Adjusted gross margin was 49.6% in the second quarter, down 60 basis points year over year.
Adjusted research and development expenses totaled approximately $10.2 million, up almost 5.1% from the year-ago quarter’s level.
Adjusted selling, general and administrative expenses were $50.5 million, up 24.1% year over year.
Adjusted operating income totaled $15.6 million, down almost 47.1% from the prior-year quarter. Adjusted operating margin was 10.1% in the second quarter.
As of Jun 30, 2024, Repligen had cash and cash equivalents worth $809 million compared with $780.6 million as of Mar 31, 2024.
2024 Guidance
Although Repligen narrowed its revenue guidance for 2024, the company expects orders and revenues in the second half of 2024 to be better than the first half.
The company now expects total revenues in the range of $620-$635 million for 2024 compared with the earlier projection of $620-$650 million.
Adjusted EPS is anticipated to be between $1.42 and $1.49 in 2024, unchanged from the previous guidance.
The company anticipates base business revenues to be down 1% to up 1% in 2024.
Adjusted net income is estimated in the $80-$84 million band, unchanged from the previous guidance. Meanwhile, adjusted operating income is anticipated in the $76-$81 million range compared with the earlier projection of $83-$88 million.
Repligen expects an adjusted gross margin in the 49 range. Adjusted operating margin is anticipated in the band of 12.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -12.85% due to these changes.
VGM Scores
At this time, Repligen has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 F. 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.
Performance of an Industry Player
Repligen belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bristol Myers reported revenues of $12.2 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.07 for the same period compares with $1.75 a year ago.
For the current quarter, Bristol Myers is expected to post earnings of $1.58 per share, indicating a change of -21% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.
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Repligen (RGEN) Down 13.1% 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 13.1% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Repligen's Q2 Earnings & Revenues Meet Estimates
Repligen reported second-quarter 2024 adjusted earnings per share of 33 cents, which came in line with the Zacks Consensus Estimate. The company had recorded adjusted earnings of 53 cents per share in the year-ago quarter.
Total revenues were $154 million, down 3% year over year on a reported basis. Excluding the impact of acquisition revenues and currency exchange, revenues declined 5% year over year organically. Revenues were also in line with the Zacks Consensus Estimate.
The year-over-year decrease in total revenues can be attributed to the absence of COVID-related revenues and the expected decrease in revenues from protein franchisees.
Quarter in Detail
Product revenues were $154 million, down 3.2% from the year-ago period. Royalty and other revenues were $0.04 million, almost flat year over year.
Repligen’s base business revenues of $149.6 million declined 5% year over year, owing to the anticipated decline in revenues from the proteins business.
The company’s base business can be categorized under four franchises — filtration, chromatography, protein and process analytics.
Revenues from the chromatography business improved 10% on a sequential basis. Repligen believes that the franchisee is witnessing signs of recovery as orders keep gaining traction.
The filtration franchise’s sales grew almost 10% year over year, excluding non-COVID filtration revenues, driven by the success of ATF Tangenx flat sheet cassettes and systems.
Revenues in the protein franchise have been declining in recent quarters and the company believes that it will continue to be the same in the remainder of 2024. The company expects the protein franchise to deliver $67-$72 million in revenues in 2024.
Despite a slow start, RGEN believes that the analytics business unit is picking up pace in generating revenues.
Revenues from the company’s new modalities business, which includes cell and gene therapy and mRNA, were up more than 5% year on year in the second quarter.
Adjusted gross margin was 49.6% in the second quarter, down 60 basis points year over year.
Adjusted research and development expenses totaled approximately $10.2 million, up almost 5.1% from the year-ago quarter’s level.
Adjusted selling, general and administrative expenses were $50.5 million, up 24.1% year over year.
Adjusted operating income totaled $15.6 million, down almost 47.1% from the prior-year quarter. Adjusted operating margin was 10.1% in the second quarter.
As of Jun 30, 2024, Repligen had cash and cash equivalents worth $809 million compared with $780.6 million as of Mar 31, 2024.
2024 Guidance
Although Repligen narrowed its revenue guidance for 2024, the company expects orders and revenues in the second half of 2024 to be better than the first half.
The company now expects total revenues in the range of $620-$635 million for 2024 compared with the earlier projection of $620-$650 million.
Adjusted EPS is anticipated to be between $1.42 and $1.49 in 2024, unchanged from the previous guidance.
The company anticipates base business revenues to be down 1% to up 1% in 2024.
Adjusted net income is estimated in the $80-$84 million band, unchanged from the previous guidance. Meanwhile, adjusted operating income is anticipated in the $76-$81 million range compared with the earlier projection of $83-$88 million.
Repligen expects an adjusted gross margin in the 49 range. Adjusted operating margin is anticipated in the band of 12.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -12.85% due to these changes.
VGM Scores
At this time, Repligen has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 F. 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.
Performance of an Industry Player
Repligen belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bristol Myers reported revenues of $12.2 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.07 for the same period compares with $1.75 a year ago.
For the current quarter, Bristol Myers is expected to post earnings of $1.58 per share, indicating a change of -21% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.