Repligen (RGEN) Q2 Earnings and Sales Beat Estimates, Stock Up

Repligen Corporation RGEN announced second-quarter 2022 adjusted earnings per share (EPS) of 91 cents, beating the Zacks Consensus Estimate of 72 cents. Earnings also rose 15.2% year over year.

Total revenues of $207.6 million also surpassed the Zacks Consensus Estimate of $189 million. Sales rose 27.4% year over year (32% in constant currency), driven by major growth in the company’s filtration and chromatography franchises and robust demand across its core monoclonal antibody and gene therapy markets.

Excluding the impact of currency and acquisitions/divestitures, Repligen’s organic revenues grew 29% year over year for second-quarter 2022.

Quarter in Detail

During the quarter, Repligen’s base business accounted for 80% of revenues while COVID-related sales constituted 17%. The remaining growth can be attributed to inorganic revenues from the acquisitions made during 2021.

We note that Repligen’s base business can be categorized mainly under four franchises, namely filtration, chromatography, protein and process analytics.

Sales of the company’s overall base business registered growth of 41% year over year. The base business excludes COVID-related revenue and inorganic acquisition revenue from 2021 acquisitions

Revenues in the filtration business were up more than 40% year over year in the second quarter. In the chromatography segment, Repligen witnessed a 50% year-over-year surge in demand for its large-scale columns. Repligen’s process analytics franchises performed well, driven by an increase of 40% year over year sales of FlowVPX. Revenue growth of the protein franchise was down from the year-ago quarter’s level due to tough competition for both ligands and growth factors

The gene-therapy business was up more than 70% during the quarter. The company’s cell and gene therapy accounted for 15% of total revenues in the reported quarter.

Adjusted gross margin was 58.7% in the second quarter, down 330 basis points (bps) year over year, compared to 62% in the year-ago quarter.

For the reported quarter, adjusted research and development expenses were $10.23 million, up 27.5% from the year-ago quarter’s figure.

Adjusted selling, general and administrative expenses were $46.09 million, surging 26.6% year over year.

Adjusted operating income was $65.6 million, increasing 16% year over year. Adjusted operating margin was 31.6%, down 310 bps year over year.

As of June 30, 2022, Repligen had cash and cash equivalents worth $596.5 million compared with $584.6 million on Mar 31, 2022.

Updated 2022 Guidance

Repligen raised its sales as well as profit guidance for 2022.

Repligen’s shares were up 11.7% on Tuesday after it announced the better-than-expected results and also raised its guidance.

Shares of Repligen have dropped 9.1% in the year so far compared with the industry’s 21.5% decline.

Image Source: Zacks Investment Research

Repligen raised the revenue guidance for the company and now expects revenues in the range of $790-$810 million, up from the earlier projected levels of $770-$800 million. The new revenue guidance indicates overall revenue growth of 18-21% year over year on a reported basis, while 22-25% growth on a constant-currency basis. Organic growth is now expected in the range of 19-22%, up from the previously expected range of 14-18%.

Repligen now expects base business revenues to increase 31-33%, up from the previously-issued guidance of 24-31%

Repligen anticipates increased projected demand for products sold under its base business. However, RGEN expects the rise in revenue to be offset by dampened COVID-related sales as a result of slowing vaccination rates.

Adjusted net income is now projected in the $180-$184 million band, up from the earlier guidance of $177-$182 million. Adjusted operating income is now anticipated within $234-$239 million, up from the earlier projected $225-$231 million band.

Adjusted EPS is anticipated within $3.13-$3.20, suggesting an increase from the earlier guidance of $3.07-$3.15.

Repligen Corporation Price, Consensus and EPS Surprise

Repligen Corporation Price, Consensus and EPS Surprise

Repligen Corporation price-consensus-eps-surprise-chart | Repligen Corporation Quote

Zacks Rank & Stocks to Consider

Currently, Repligen has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are BioNTech BNTX, Pliant Therapeutics PLRX and Scholar Rock SRRK, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BioNTech’s earnings estimates for 2022 have improved from $33.18 to $34.71 in the past 30 days. Shares of BioNTech have declined 35% year to date. Earnings of BNTX beat earnings estimates in all the last four quarters. BNTX delivered an earnings surprise of 56.87%, on average.

Pliant Therapeutics’ loss estimates for 2022 have narrowed from $3.36 to $3.20 in the past 30 days. Shares of Pliant Therapeutics have returned 28% year to date. Earnings of PLRX beat earnings estimates only once in the last four quarters. PLRX delivered an earnings surprise of 0.90%, on average

Scholar Rock’s loss estimates for 2022 have narrowed from $2.59 to $2.48 in the past 30 days. Shares of SRRK have declined 73.8% year to date. Earnings of BNTX beat earnings estimates in two of the trailing four quarters and missed the same in the remaining two occasions. SRRK delivered an earnings surprise of 13.12%, on average.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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