Repligen (RGEN) Reports Q2 Results
Repligen (RGEN) reported Q2 results before the bell today that surpassed expectations and has the stock up nicely (6% at mid-day) and bucking the broader market weakness.
Revenue was up 86% to $163 million, beating by nearly $19 million, while adjusted EPS of $0.79 rose by 88% and beat by $0.27. Management raised full-year guidance to a range of $625 million to $645 million (up 71% to 76%), well above consensus estimates of $586 million. Adjusted EPS guidance goes to $2.71 - $2.78, way above consensus of $1.71. Gross margins are up a lot, from 57.9% in the year ago quarter to 62% in Q2.
Orders for COVID programs are stretching out into 2022 and in Q2 COVID drove 27% of revenue and contributed 42% of revenue growth. Non-COVID programs grew by 35% and contributed 31% of growth, illustrating that this is NOT just a COVID story. Revenue from businesses acquired in 2020 accounted for 7% of revenue. Repligen has $734 million in the bank.
Stepping back, we see a company that’s growing very nicely and is expecting COVID tailwinds to extend at least into the back end of 2022, if not beyond. Acquisitions continue to be part of the growth story and not just on the front end - as they roll off (after 12 months) to become “organic” they are clearly still contributing to growth.
I’ve had a lot of conviction in Repligen for a long time and this quarter only adds to it. All other factors being equal I see this quarter helping to propel RGEN to new highs above 230 before long. Keeping at buy. BUY