Repligen Corporation RGEN reported third-quarter 2024 adjusted earnings per share of 43 cents, which beat the Zacks Consensus Estimate of 34 cents. The company recorded adjusted earnings of 23 cents per share in the year-ago quarter.

Total revenues were $154.9 million, up 10% year over year on a reported basis. Excluding the impact of acquisition revenues and currency exchange, revenues rose 7% organically. The reported figure also beat the Zacks Consensus Estimate of $153.1 million.

This increase in total revenues can be attributed to the encouraging uptake in new modalities, CDMO and equipment sales during the quarter.

More on RGEN’s Q3 Earnings

Product revenues (including revenues from base business) were $154.8 million, up 10% from the year-ago level. Royalty and other revenues amounted to $0.04 million, almost flat year over year.

The company’s base business can be categorized under four franchises — filtration, chromatography, protein and process analytics. Revenues from Repligen’s base business rose 7% year over year to $150.8 million, driven by continued uptake in the Filtration business, combined with order recovery in the chromatography segment.

Revenues from the company’s new modalities business, which includes cell and gene therapy and mRNA, were up 20% year over year.

While CDMO sales also rose around 20% year over year, revenues from the company’s equipment business rose about 6%. Per management, CDMO and equipment sales also rose on a sequential basis.

Discussion on RGEN’s Costs, Margins & Cash Position

Adjusted gross margin was 50.7% compared with 42% in the year-ago period.

Adjusted research and development expenses totaled approximately $9.6 million, down 9% from the year-ago quarter’s level. Adjusted selling, general and administrative expenses rose 5% to $45.8 million.

Adjusted operating income totaled $23.1 million compared with $5.2 million in the year-ago period. Adjusted operating margin was 14.9% in the quarter.

As of Sept. 30, 2024, Repligen had cash and cash equivalents worth $784 million compared with $809 million as of June 30, 2024.

RGEN’s 2024 Guidance

Repligen lowered its guidance for 2024 revenues. The company now expects total revenues to be in the range of $630-$639 million compared with the earlier projection of $627-$642 million.

Adjusted EPS is anticipated to be between $1.50 and $1.58 in 2024 compared with the previously issued guidance of $1.42-$1.49.

This raised EPS outlook is likely why Repligen’s stock price was up nearly 8% in pre-market trading today. Year to date, the stock fell 22.4% compared with the industry’s 0.9% decline.