Repligen Q3 Earnings Beat Expectations, Highlights Improving Market Conditions, Analyst Says Well-Positioned For Long-Term Growth

Repligen Corp RGEN released on Tuesday third-quarter adjusted EPS of 43 cents, up from 23 cents a year ago, beating the consensus of 33 cents.

The bioprocessing technology reported sales of $154.87 million, up 10% year-over-year, beating the consensus of $153.23 million.

Olivier Loeillot, president and CEO of Repligen, said, "I'm pleased to report strong third-quarter results, made possible by the excellent execution by our team and improving market conditions. We are encouraged to see strengthening CDMO and equipment sales in the quarter, each delivering year-over-year and sequential growth.”

The company reported record quarterly revenue for new modalities, a 20% increase year over year. CDMO and equipment revenues grew ~20% and 6% year-over-year, respectively, adding to confidence in a broader market recovery.

Guidance: Repligen raises 2024 EPS guidance from 17 cents-24 cents to 25 cents-32 cents compared to a consensus estimate of 54 cents.

Repligen expects 2024 adjusted EPS of $1.50-$1.58 compared to prior guidance of $1.42-$1.49 and consensus of $1.43.

The company has narrowed sales guidance from $627 million-$642 million to $630 million-639 million versus the consensus of $628.98 million.

William Blair notes that after reaffirming expectations for low-double-digit organic growth in the second half of 2024 and receiving positive feedback from industry conferences, Repligen's third-quarter earnings show that the bioprocessing recovery is on track.

The company has narrowed its guidance, now expecting about 8% revenue growth in the fourth quarter compared to last year, aligning with William Blair's and market estimates and bioprocessing peers predicting mid- to high-single-digit growth for the year-end.

Additionally, Repligen highlighted strong sales in contract development and manufacturing (CDMO) and equipment, which is a positive sign.

The analyst believes Repligen is well-positioned for long-term growth thanks to its involvement in new modalities, strong R&D capabilities, and clinical exposure.

William Blair maintained the Outperform rating for Repligen.

RGEN Price Action: Repligen stock is up 7.32% at $149.72 at publication Tuesday.

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Photo: Courtesy Repligen