What Happened?
Shares of biopharma manufacturing company Repligen Corporation (NASDAQ: RGEN) fell 4.2% in the afternoon session after the company reported third-quarter results that beat revenue and profit expectations but lowered its full-year adjusted earnings per share (EPS) forecast.
For the quarter, revenue grew 21.9% year-over-year to $188.8 million, ahead of analyst estimates of $181.9 million. Adjusted earnings came in at $0.46 per share, also beating the consensus forecast of $0.42. Despite the strong quarterly performance, the company's updated outlook for the full year appeared to concern investors. Management lowered its full-year adjusted EPS guidance to a midpoint of $1.67. While the company raised its full-year revenue guidance, the weaker earnings outlook likely drove the stock's decline as it overshadowed the otherwise positive results.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Repligen? Access our full analysis report here.
What Is The Market Telling Us
Repligen’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 3% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
Repligen is up 7.7% since the beginning of the year, but at $154.09 per share, it is still trading 11.6% below its 52-week high of $174.24 from January 2025. Investors who bought $1,000 worth of Repligen’s shares 5 years ago would now be looking at an investment worth $900.08.
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