雅虎香港財經 Repligen (RGEN) Down 10.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Repligen (RGEN). Shares have lost about 10.9% 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 Q1 Earnings Miss, Revenues Beat Estimates
Repligen reported first-quarter 2024 adjusted earnings per share of 28 cents, which missed the Zacks Consensus Estimate of 29 cents. The company had recorded adjusted earnings of 64 cents per share in the year-ago quarter.
Total revenues were $151.3 million, down 17.2% year over year on a reported basis and 20% organically. Revenues, however, beat the Zacks Consensus Estimate of $150 million.
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
The company reported product revenues of $151.3 million, down 17.1% from the year-ago period. It also reported royalty and other revenues of $0.04 million, almost flat year over year.
Repligen’s base business revenues of $145 million declined 9.4% year over year, owing to the anticipated decline in revenues from proteins business on lower affinity ligands and resin demand.
The company’s base business can be categorized under four franchises — filtration, chromatography, protein and process analytics.
Revenues from the chromatography business improved slightly on a sequential basis. RGEN expects revenues to improve further in the second quarter as the chromatography business continues to recover from the resin shortage challenges.
The filtration franchise’s sales grew more than 10% year over year, while non-COVID filtration revenues grew more than 15% on a sequential basis, driven by the success of ATF.
Revenues in the protein franchise declined both on a year-over-year basis and on a sequential basis due to weak demand reflecting the Cytiva (a standalone operating company owned by Danaher Corporation) drop-off since it is producing product in-house and lower forecast for ligands from other customers.
Though the analytics business had a slow start in the first quarter, Repligen continues to see strong demand for FlowVPX and real-time process management or RPM, which is the growth driving factor for this business unit.
Revenues from the company’s new modalities business, which includes cell and gene therapy and mRNA, were up more than 15% year on year in the reported quarter.
Newly acquired, Metenova generated revenues of more than $5 million in the first quarter of 2024, in line with management’s expectations.
Adjusted gross margin was 48.6% in the first quarter, down 60 basis points year over year.
Adjusted research and development expenses totaled approximately $11 million, down almost 9.8% from the year-ago quarter’s level.
Adjusted selling, general and administrative expenses were $50.8 million, up 6.3% year over year.
Adjusted operating income totaled $11.8 million, down almost 71% from the prior year quarter.
As of Mar 31, 2024, Repligen had cash and cash equivalents worth $780.6 million compared with $751.3 million as of Dec 31, 2023.
2024 Guidance
Repligen reiterated the guidance it had provided earlier this year. The company expects total revenues in the range of $620-$650 million for 2024. Adjusted EPS is anticipated to be between $1.42 and $1.49 in 2024.
The company anticipates base business revenues to be down 1% to up 4% in 2024.
Adjusted net income is estimated in the band of $80-$84 million. Adjusted operating income is anticipated in the $83-$88 million range.
Repligen expects adjusted gross margin in the 49 range. Adjusted operating margin is anticipated in the band of 13.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Repligen has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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, Biogen Inc. (BIIB), has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Biogen reported revenues of $2.29 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $3.67 for the same period compares with $3.40 a year ago.
For the current quarter, Biogen is expected to post earnings of $3.98 per share, indicating a change of -1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Biogen. Also, the stock has a VGM Score of B.
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