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HALO Gears Up to Report Q4 Earnings: Here's What You Should Know

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Halozyme Therapeutics (HALO - Free Report) is scheduled to report fourth-quarter and full-year 2024 results on Feb. 18, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $284.3 million, while the same for earnings is pinned at $1.16 per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the past year, shares of Halozyme have rallied 65.8% against the industry’s decline of 3.5%.

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Let’s see how things might have shaped up prior to the announcement.

Factors Likely to Influence HALO's Q4 Results

Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s (JNJ - Free Report) Darzalex and Roche’s Phesgo.

The company’s top line comprises product sales, royalty payments from Roche for Phesgo and J&J for subcutaneous Darzalex as well as revenues under collaboration agreements related to its Enhanze technology with some large pharma companies.

Revenues in the to-be-reported quarter are likely to have been driven by higher royalty payments from Roche for Phesgo and from JNJ for subcutaneous Darzalex due to robust demand.

Revenues under collaborative agreements increased significantly in the third quarter, a trend most likely to have continued in the fourth quarter as well.

Halozyme has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022. Incremental sales from these products, too, are expected to have boosted Halozyme’s revenues in the to-be-reported quarter.

HALO's 2025 Guidance

Owing to the strong business performance in 2024, the company raised its guidance for 2025 last month. Total revenues are now expected in the range of $1.15 billion to $1.22 billion in 2025, implying year-over-year growth of 16% to 23%. Revenues were earlier projected in the range of $1.09 billion to $1.17 billion.

Royalty revenues are now anticipated in the range of $725-$750 million, implying year-over-year growth of 30% to 35%. Previously, royalty revenues were expected to be $650-$675 million.

Investors will be keen to know whether the company increases the guidance further or maintains it on the upcoming earnings call.

Earnings Surprise History

Halozyme has a mixed history of earnings surprises. The company beat on earnings in three of the trailing four quarters while meeting the same on the remaining occasion, delivering an average surprise of 14.86%. In the last reported quarter, HALO posted an earnings surprise of 28.28%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for HALO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: Halozyme’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.16. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: HALO has a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Pacira BioSciences, Inc. (PCRX - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #1 at present.

Shares of PCRX have declined 7.2% in the past year. PCRX beat earnings estimates in two of the trailing four quarters, met once and missed the same on the remaining occasion, delivering an average surprise of 7.13%.

Mirum Pharmaceuticals, Inc. (MIRM - Free Report) has an Earnings ESP of +24.63% and a Zacks Rank #2 at present.

Shares of MIRM have surged 78.2% in the past year. MIRM beat on earnings in one of the trailing four quarters while missing the same on the remaining three occasions, delivering an average negative surprise of 26.03%.

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