Repligen Corporation Surpasses Earnings Expectations in Q3 2024
Repligen Corporation (RGEN) announced adjusted earnings per share of 43 cents for the third quarter of 2024, exceeding the Zacks Consensus Estimate of 34 cents. This is a significant increase from the adjusted earnings of 23 cents per share reported during the same period last year.
Total revenues reached $154.9 million, marking a 10% increase compared to the previous year. When accounting for acquisition revenues and currency fluctuations, organic revenue growth was 7%. This figure also surpassed the Zacks Consensus Estimate of $153.1 million.
The revenue growth can be largely attributed to the strong demand for new modalities, as well as increases in CDMO and equipment sales over the quarter.
Highlights from Repligen’s Q3 Performance
Product revenues, which include base business sales, totaled $154.8 million—an increase of 10% year over year. Royalty and other revenues were relatively stable at $0.04 million compared to the prior year.
Repligen’s core business consists of four major franchises: filtration, chromatography, protein, and process analytics. This base business saw revenues rise 7% year over year to $150.8 million, driven by strong performance in the Filtration segment and a recovery in the chromatography sector.
The new modalities business, which encompasses cell and gene therapies and mRNA, experienced a notable 20% year-over-year revenue increase.
CDMO sales also rose approximately 20% from the previous year, while equipment revenues grew about 6%. Management indicated that these lines also saw improvements compared to the previous quarter.
Analyzing Repligen’s Expenses and Financial Health
The company reported an adjusted gross margin of 50.7%, an improvement from 42% in the same quarter last year.
Adjusted research and development expenses were around $9.6 million, reflecting a 9% decrease from the prior year’s level. However, adjusted selling, general, and administrative expenses rose by 5% to $45.8 million.
Adjusted operating income totaled $23.1 million, compared to $5.2 million the previous year, resulting in an adjusted operating margin of 14.9% for the quarter.
As of September 30, 2024, Repligen had cash and cash equivalents of $784 million, slightly down from $809 million on June 30, 2024.
Repligen’s 2024 Revenue Forecast
Repligen has adjusted its revenue guidance for 2024, now projecting total revenues in the range of $630-$639 million, compared to the previous forecast of $627-$642 million.
The company also adjusted its anticipated earnings per share for 2024 to be between $1.50 and $1.58, up from the earlier estimate of $1.42-$1.49. This positive earnings outlook may explain the nearly 8% increase seen in the stock price during pre-market trading today. Year to date, the stock has decreased by 22.4%, contrasting with a slight decline of 0.9% in the overall industry.
Repligen expects its adjusted gross margin to be between 49.5% and 50.5%, improved from the initial guidance of 49% to 50%. Adjusted operating income guidance was increased to the range of $80-$85 million, up from $76-$81 million previously.
Zacks Rank for Repligen
Currently, Repligen holds a Zacks Rank of #3 (Hold).
Repligen Corporation Stock Overview
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Biogen Inc. (BIIB) : Free Stock Analysis Report
Repligen Corporation (RGEN) : Free Stock Analysis Report
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