Halozyme's Q4 Earnings Beat Consensus Despite Lower Product Sales Hit Topline Growth

Halozyme Therapeutics Inc HALO reported Q4 revenue of $102 million compared to $121.7 million a year ago, beating the consensus of $100.32 million. 

• The decrease was primarily driven by a decline in revenue under collaboration agreement and product sales, partially offset by an increase in royalty revenue attributable to subcutaneous Darzalex (daratumumab). 
• Revenue for Q4 included $62.6 million in royalties.
• Adjusted EPS of $0.42 beat the consensus of $0.41.
• The Company reported an operating income of $56.5 million, down from $77.6 million a year ago.
•  "In 2022, we look forward to building on 2021 momentum and anticipate 50% growth in our high-margin, recurring royalty revenues driven by further adoption of wave 2 products. We project further expansion and maturing of our pipeline, with 4 new targets entering Phase 1 development and at least 5 products advancing to Phase 2 or Phase 3 development," noted Helen Torley, president & CEO.
• FY22 Guidance: Halozyme expects revenues of $530 million - $560 million (consensus of $554.20 million) and expects revenue from royalties to increase approximately 50% Y/Y to roughly $300 million.
• It expects an adjusted EPS of $2.05 - $2.20, compared to the consensus estimate of $2.18.
• Halozyme forecasts operating income of $350 million - $380 million, up 27% - 38% Y/Y, representing a margin of over 65%.
• Price Action: HALO shares closed at $32.79 on Tuesday.