Why Is Repligen (RGEN) Down 12.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Repligen (RGEN). Shares have lost about 12.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.

Repligen Beats on Q4 Earnings and Sales

Repligen reported fourth-quarter 2019 earnings per share of 20 cents, beating the Zacks Consensus Estimate of 18 cents. The figure also surpassed the year-ago earnings of 19 cents.

Total revenues of $69.5 million also exceeded the Zacks Consensus Estimate of $68 million. Additionally, the top line surged 34% year over year (35% 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 21% organically year over year in the fourth quarter.

Quarter in Detail

In the reported quarter, adjusted research and development expenses were $4.9 million, up 63.3% from the year-ago figure.

Adjusted selling, general and administrative expenses were $22.2 million, surging 54.2% year over year.

Adjusted gross margin was 57.2%, reflecting a 240-bps improvement compared from the2018-level. Adjusted operating income was $12.7 million, reflecting an increase of 15% year over year.

As of Dec 31, 2019, Repligen had cash and cash equivalents worth $528.4 million compared with $513.5 million on Sep 30, 2019.

2020 Guidance

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

Adjusted net income is projected in the range of $57-$60 million while adjusted operating income is anticipated in the band of $70-$74 million.

Adjusted EPS is anticipated within $1.07-$1.12 for 2020.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -13.94% due to these changes.

VGM Scores

At this time, Repligen has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. 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 this revision indicates a downward shift. Notably, Repligen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.