Repligen (RGEN) Tops Q1 EPS by 7c, Revenues Beat; Raises FY19 EPS/Revenue Guidance

Repligen (NASDAQ: RGEN) reported Q1 EPS of $0.28, $0.07 better than the analyst estimate of $0.21. Revenue for the quarter came in at $60.6 million versus the consensus estimate of $53.62 million.

• Revenue increased by 35% year-over-year, and 37% organically, to a record $60.6 million
• GAAP income from operations increased 510 bps to 18.4% of revenue
• Adjusted (non-GAAP) income from operations increased 500 bps to 25.7% of revenue
• GAAP fully-diluted EPS increased to $0.17 compared to $0.08 for the first quarter of 2018
• Adjusted (non-GAAP) fully-diluted EPS increased to $0.28 compared to $0.17 for the first quarter of 2018

Tony J. Hunt, President and Chief Executive Officer said, “I’m extremely pleased with our accomplishments and performance during the first quarter. We executed on our business and strategic goals, reporting record quarterly revenue with organic growth of 37% backed by continuing strong order demand. In April, we announced our agreement to acquire C Technologies, whose products expand our direct portfolio and move Repligen into process analytics with market-leading systems to measure protein concentration. Also in April we priced and have now closed on an equity offering that raised net proceeds of $190 million. We remain very confident about the overall performance for the company in 2019 and our recent announcements place us in a strong position to execute on our next phase of growth as we continue to deliver on our strategy to build a successful company through technology and market leadership in bioprocessing.”

GUIDANCE:

Repligen sees FY2019 EPS of $0.84-$0.90, versus the consensus of $0.84. Repligen sees FY2019 revenue of $235-241 million.

• Total revenue is projected to be in the range of $235-$241 million, an increase from our previous guidance of $218-$225 million. Our current guidance reflects overall revenue growth of 21%-24%, and organic revenue growth of 22%-25%.
• Gross margin is expected to be 56%-57% on both a GAAP and non-GAAP basis, consistent with our previous guidance.
• Income from operations is expected to be in the range of $39-$42 million on a GAAP basis, an increase from our previous guidance of $36-$39 million. Adjusted (non-GAAP) income from operations is expected to be in the range of $52-$55 million, an increase from our previous guidance of $48-$51 million.
• Net income is expected to be in the range of $24.5-$27.5 million on a GAAP basis, an increase from our previous guidance of $23-$25 million. Adjusted (non-GAAP) net income is expected to be in the range of $41-$44 million, an increase from our previous guidance of $38-$40 million.
• Fully diluted GAAP EPS is expected to be in the range of $0.50-$0.56, an increase from our previous guidance of $0.48-$0.53. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $0.84-$0.90, an increase from our previous guidance of $0.81-$0.86. Both GAAP and adjusted EPS guidance includes the impact of our recent equity financing, which resulted in a weighted average addition of 2.1 million shares outstanding.

Our non-GAAP guidance for the fiscal year 2019 excludes the following items:

• $10.5 million estimated intangible amortization expense; $0.6 million in cost of product revenue and $9.9 million in G&A.
• $2.7 million estimated acquisition and integration expenses associated with our acquisition of Spectrum Inc. ($1.3 million), and first quarter of 2019 costs related to our proposed acquisition of C Technologies ($1.4 million).
• $4.5 million of non-cash interest expense (Other income (expense)) related to our debt financing.

Our non-GAAP guidance for the fiscal year 2019 includes:

• An income tax increase of $1.1 million, representing the tax impact of acquisition costs and intangible amortization.

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

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