Tuesday, Repligen Corporation RGEN reported second-quarter sales of $154.1 million, almost in line with the consensus estimate of $154.12 million.
The company reported second-quarter adjusted gross margin of 49.6% compared to 50.2% a year ago.
The adjusted operating margin fell from 18.5% to 10.1%, and the EBITDA margin was 15.2%, down from 24.2% a year ago.
Tony J. Hunt, CEO of Repligen, said, “We delivered solid second-quarter revenue of $154 million and first-half revenue of $305 million, achieving our year-to-date sales target. We are very encouraged by orders in the quarter, with continued strength in Pharma demand and a pickup in CDMO activity. New modalities continued to show strong year-over-year momentum in both revenue and orders.”
The company reported an adjusted EPS of 33 cents, which is in line with the consensus but below $0.53 reported a year ago.
In June, Repligen approved the planned transition of Tony J. Hunt from CEO to Executive Chair, effective Sept. 1, 2024.
The company appointed Olivier Loeillot to succeed Hunt as president and CEO.
Repligen “strengthened” its Proteins business with new product launches and has a pending acquisition of Tantti Laboratory, Hunt noted. The second half of 2024 will “outpace the first half on both revenue and orders,” he added.
Guidance: Repligen expects 2024 revenues of $620 million—$635 million, compared to prior guidance of $620 million—$650 million and the consensus of $636.6 million.
The company reaffirms 2024 adjusted EPS guidance of $1.42-$1.49 versus consensus of $1.45.
William Blair views Repligen’s guide as among the least safe in the space, given that it was contingent upon ordering improving in the second/third quarter. Therefore, the analyst is not surprised by the guidance cut. The analyst notes that the magnitude of the cut was less than feared.
Despite the guidance cut, management noted an improved book-to-bill of 1.02x (a step up from the first-quarter book-to-bill of 0.99x). Further, management reiterated that it expects double-digit non-COVID revenue growth in the year’s second half.
The analyst keeps the Outperform rating.
Price Action: RGEN stock is up 11.3% at $153.61 at last check Tuesday.
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