Repligen (RGEN) Tops Q3 EPS by 4c, Beats on Revenues; Offers FY EPS/Revenues Guidance

Repligen (NASDAQ: RGEN) reported Q3 EPS of $0.15, $0.04 better than the analyst estimate of $0.11. Revenue for the quarter came in at $36.6 million versus the consensus estimate of $35.29 million.

Financial Guidance for 2017Today, we are refining our guidance for fiscal year 2017. This updated guidance is based on expectations for our business, including the impact of our ownership of Spectrum, and does not include the financial impact of potential new acquisitions or future fluctuations in foreign currency exchange rates.

Financial guidance highlights for the year 2017 are below, and a reconciliation of our GAAP to adjusted (non-GAAP) financial guidance is included in the supplemental reconciliation schedule attached.

We are projecting revenue in the range of $139-$142 million, narrowing our previous guidance of $138-$144 million, and reflecting revenue growth of 33%-36%, or 32.5%-35.5% at constant currency.
We are projecting GAAP gross margin in the range of 52.5%-53.5%, compared to our previous guidance of 53.5%-54.5%. Our adjusted gross margin guidance of 55.5%-56.5% is consistent with our previous guidance.

Income from operations is expected to be $13-$15 million on a GAAP basis, compared to our previous guidance of $14-$16 million, and adjusted income from operations is expected to be $30-$32, consistent with our previous guidance.

Other expense for the year is expected to be approximately $6.5 million on a GAAP basis, including debt related interest expense of $6.4 million (of which $2.4 million is cash interest expense), and adjusted other expense is expected to be approximately $2.5 million excluding non-cash interest expense, consistent with our previous guidance.

We expect an income tax benefit of approximately $9 million on a GAAP basis, a $3 million improvement compared to our previous guidance of a $6.0 million tax benefit. Adjusted income tax expense is expected to be approximately $4.0-$4.5 million, a decrease from our previous guidance of $5.0 million.

Net income is expected to be in the range of $15.0-$16.0 million on a GAAP basis, an increase from our previous guidance of $13.5-$15.5 million. Adjusted net income is expected to be $23.5-$24.5 million, an increase from our previous guidance of $22.5-$24.5 million.

Fully-diluted GAAP EPS is expected to be in the range of $0.38-$0.41, an increase from our previous guidance of $0.34-$0.39. Adjusted fully diluted EPS is expected to be in the range of $0.60-$0.63, an increase from our previous guidance of $0.57-$0.62. Our EPS guidance assumes a year-end weighted average of 39-39.5 million fully diluted shares, which considers the impact of new shares issued in conjunction with our acquisition of Spectrum and our follow-on equity offering which closed in July 2017. This share count also includes a number of unissued shares associated with our May 2016 convertible debt offering, as determined on the basis of share price premium relative to conversion price.

For earnings history and earnings-related data on Repligen (RGEN) click here.

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