Repligen (RGEN) Down 0.4% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Repligen (RGEN). Shares have lost about 0.4% 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 its most recent earnings report in order to get a better handle on the important drivers.

Repligen Beats on Q1 Earnings and Sales

Repligen delivered first-quarter 2020 earnings per share of 32 cents, beating the Zacks Consensus Estimate of 22 cents. The bottom line also surpassed the year-ago earnings of 28 cents.

Moreover, total revenues of $76.1 million exceeded the Zacks Consensus Estimate of $72 million. Additionally, the top line improved 25% year over year (26% at constant currency) on strong performances by the filtration and chromatography product franchises.

Excluding the impact of currency and acquisitions/divestures, Repligen’s revenues grew 16% organically year over year in the fourth quarter of 2019.

Quarter in Detail

In the reported quarter, adjusted research and development expenses were $4.4 million, up 22.2% from the year-ago figure.

Adjusted selling, general and administrative expenses were $21.8 million, surging 47.2% year over year.

Adjusted gross margin was 58.5%, reflecting a 250-bps improvement from the 2019-level. Adjusted operating income was $18.3 million, increasing 18% year over year.

As of Mar 31, 2020, Repligen had cash and cash equivalents worth $529.5 million compared with $528.4 million on Dec 31, 2019.

2020 Guidance

Repligen reiterated its revenue guidance for the full year.

The company expects total revenues in the range of $309-$319 million, implying organic growth of 10-14%.

However, adjusted net income is projected in the $58-$61 million band, indicating an increase from the previous guidance of $57-$60 million while adjusted operating income is anticipated within $72-$76 million, suggesting a rise from the past view of $70-$74 million.

Adjusted EPS is anticipated within $1.09-$1.14, implying growth from the earlier guidance of $1.07-$1.12 for 2020.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted 9.44% due to these changes.

VGM Scores

Currently, Repligen has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 has been net zero. Notably, Repligen has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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