Repligen (RGEN) Tops Q4 EPS by 2c, Revenues Beat; Offers FY20 EPS/Revenue Guidance

Repligen (NASDAQ: RGEN) reported Q4 EPS of $0.20, $0.02 better than the analyst estimate of $0.18. Revenue for the quarter came in at $69.5 million versus the consensus estimate of $68.37 million.

Fourth Quarter 2019 Highlights

• Revenue increased by 34% year-over-year as reported (35% at constant currency), to $69.5 million
• Organic revenue growth was 21%
• GAAP fully diluted EPS was $0.07 compared to $0.12 for the fourth quarter of 2018
• Adjusted (non-GAAP) fully diluted EPS increased to $0.20 compared to $0.19 for the fourth quarter of 2018

Tony J. Hunt, President and Chief Executive Officer said, “We are delighted with the way we finished off 2019 with 21% organic growth in the fourth quarter and 33% for the full year. Our Filtration and Chromatography franchises accelerated in 2019 as we expanded our market presence as customers scaled these technologies into late stage processes. We also captured greater share in gene therapy manufacturing where sales more than doubled in 2019 to 15% of total revenue. Strategically, our acquisition of C Technologies established an important new Process Analytics franchise that delivered over $16M in the first 7 months of ownership. We anticipate that 2020 will be another positive year for the company as we continue to bring on additional manufacturing capacity, launch exciting new products and deliver on strong organic growth and earnings to our shareholders.”

GUIDANCE:

Repligen sees FY2020 EPS of $1.07-$1.12, versus the consensus of $1.10. Repligen sees FY2020 revenue of $309-319 million, versus the consensus of $314.74 million.

Our financial guidance for the fiscal year 2020 is based on expectations for our existing business and includes the financial impact of our acquisition of C Technologies (which closed on May 31, 2019). The guidance below excludes the impact of potential additional acquisitions and future fluctuations in foreign currency exchange rates.

• Total revenue is projected to be in the range of $309-$319 million, reflecting overall revenue growth of 14%-18% as reported and at constant currency and organic growth of 10%-14%.
• Gross margin is expected to be 55%-56% on both a GAAP and non-GAAP basis.
• Income from operations is expected to be in the range of $50-$54 million on a GAAP basis. Adjusted (non-GAAP) income from operations is expected to be in the range of $70-$74 million.
• Net income is expected to be in the range of $33.5-$36.5 million on a GAAP basis. Adjusted (non-GAAP) net income is expected to be in the range of $57-$60 million. Our current guidance reflects a tax rate of 23% on adjusted pre-tax income.
• Fully diluted GAAP EPS is expected to be in the range of $0.63-$0.68. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.07-$1.12.

Our non-GAAP guidance for the fiscal year 2020 excludes the following items:

• $4.8 million estimated acquisition and integration expenses; $0.5 million in cost of product revenue, $0.5 million in R&D and $3.8 million in SG&A.
• $15.5 million estimated intangible amortization expense; $0.3 million in cost of product revenue and $15.1 million in G&A.
• $11.0 million of non-cash interest expense (Other income (expense)) related to our convertible debt notes.

Our non-GAAP guidance for the fiscal year 2020 includes:

• An income tax increase of $7.6 million, representing the tax impact of acquisition and integration costs, intangible amortization and non-cash interest.

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

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• Alphabet (GOOGL) soars 16% on Q1 results beat, first-ever dividend