We expect investors to focus on the sales performance of

Repligen Corporation

’s

RGEN

four product franchisees, namely filtration, chromatography, protein and process analytics when it reports its fourth-quarter and full-year 2020 results.

The company’s earnings surprise record is pretty impressive. It delivered an earnings beat in each of the trailing four quarters, the average being 37.36%. In the last-reported quarter, Repligen delivered an earnings surprise of 42.86%.

Shares of Repligen have increased 14.4% so far this year compared with the

industry’s

increase of 12.9%.

Let’s see how things have shaped up for the quarter to be reported.

Factors at Play

Repligen earns its revenues from the sale of several products, which can be categorized mainly under four segments, namely filtration, chromatography, protein and process analytics.

In the last-reported quarter, Repligen’s total revenues improved substantially year over year on strong demand across all the franchises, especially the Filtration product business which performed exceptionally, a trend most likely to have continued in the to-be reported quarter.

Excluding the impact of currency and acquisitions/divestures, revenues also grew organically year over year in the last-reported quarter, a trend most likely to have continued in the to-be reported quarter.

We expect sales performance of the filtration, chromatography and protein franchises to have improved both sequentially and year over year in the fourth quarter of 2020.

The acquisition of C Technologies added a fourth franchise – process analytics, which has been doing well so far, a trend we expect to have continued in the fourth quarter.

Earlier this month, Repligen and its German partner Navigo Proteins GmbH announced that they have completed the development and launched the NGL COVID-19 spike protein affinity resin, a novel affinity resin which can be utilized in the purification of COVID-19 vaccines. This COVID-19 affinity resin is likely to provide vaccine manufacturers with a high purity capture step, thereby decreasing processing time and improving overall yield in the production of vaccines. We expect management to provide a detailed update on this development at the upcoming investors call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Repligen this season. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But this is not the case here.

Earnings ESP:

Repligen has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 31 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter.

Zacks Rank:

Repligen carries a Zacks Rank #3, which increases the predictive power of ESP. However, its 0.00% ESP makes surprise prediction difficult.

Stocks to Consider

Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:

Lexicon Pharmaceuticals, Inc.


LXRX

has an Earnings ESP of +3.57% and a Zacks Rank #2. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

ADMA Biologics, Inc.


ADMA

has an Earnings ESP of +5.88% and a Zacks Rank #3.

Immunovant, Inc.


IMVT

has an Earnings ESP of +4.55% and a Zacks Rank #2.

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