NASDAQ$HALO

Halozyme Therapeutics Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Halozyme reported its first profitable quarter of expected sustainable profitability, driven by collaboration payments and FDA approvals for partnered drugs.

Halozyme reported a profitable second quarter with earnings per share of $0.19. The company saw revenue growth driven by collaboration payments and FDA approvals for partnered drugs. They are maintaining their financial outlook for the full year 2020.

  • Two FDA approvals and one EMA approval were received by partners for products utilizing Halozyme’s ENHANZE® technology.
  • Janssen received approvals in both the U.S. and the EU for the subcutaneous form of DARZALEX® utilizing ENHANZE®.
  • Roche received FDA approval for Phesgo™, a fixed-dose combination of Perjeta® and Herceptin®, utilizing ENHANZE® technology.
  • Halozyme delivered its first profitable quarter of expected sustainable profitability with earnings per share of $0.19.

Headline financials

Total Revenue

$55.2M

Previous: $39.1M+41.1%
EPS (adj)

$0.19

Previous: -$0.10+290.0%
Capital Expenditures

-$629K

Previous: -$2.3M+72.6%
Free Cash Flow

$25.2M

Previous: -$16.9M+248.9%
Net Income

$25.8M

Previous: -$14.6M+276.5%
Operating Income

$29.6M

Previous: -$14M+311.5%
Gross Profit

$49.5M

Previous: $37.3M+32.8%
Cash & Equivalents

$134M

Previous: $67M+99.3%
Total Assets

$527M

Previous: $418M+26.1%
Stock-Based Comp

$4.26M

Previous: $9.83M-56.7%

Revenue & EPS history

Halozyme · Revenue · Quarterly

$55.2M

Q2 2020+41.1%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Halozyme · $48.9M total across 2 segments · Q2 2020

  • Revenues under collaborative agreements
    $33M
  • Royalties
    $15.8M-12.5%

Forward guidance

Halozyme maintains its financial outlook for the full year 2020.

Tailwinds

  • Revenues of $230 million to $245 million, representing growth of 17% to 25%.
  • Earnings per share on a GAAP basis of $0.60 to $0.75.
  • Company remains committed to capital return.
  • Plans to repurchase an additional number of shares, up to an additional $96 million worth, during the remainder of 2020.
  • Growth driven by partner's development and commercialization efforts.

Headwinds

  • Partners’ timelines may change as a result of future changes related to COVID-19.
  • Unexpected levels of revenues, expenditures and costs.
  • Inability to sustain profitability.
  • Unexpected delays in the execution of the Company's share repurchase program.
  • Unexpected results or delays in the growth of the Company’s ENHANZE® business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.8%

Avg return

Earnings day

+4.4%

Avg return

5 days after

+1.8%

Avg return

30 days after

62%

32 / 52 earnings

Positive

+18.2%

Q1 2025

Best reaction

-12.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+1.1%+6.5%
Q4 2025-9.0%-12.2%-21.2%
Q3 2025+2.7%+3.1%-4.9%
Q1 2025+18.2%+12.1%-8.6%
Q3 2024+13.0%+16.1%-4.7%
Q2 2024+3.9%+5.9%+17.2%
Q1 2024+2.8%+5.6%+25.9%
Q4 2023+6.3%+12.4%+11.4%
Q3 2023+9.1%+4.7%+12.3%
Q2 2023+1.5%+4.1%-6.8%
Q1 2023+13.9%+8.9%+12.8%
Q4 2022+0.1%-1.0%-32.7%
Q3 2022+7.4%+16.6%+25.0%
Q2 2022-2.1%-4.2%-11.9%
Q1 2022+3.3%+8.2%+20.4%
Q4 2021+3.1%+8.6%+18.3%
Q3 2021+2.6%+4.3%-15.0%
Q2 2021+1.8%+2.4%+3.8%
Q1 2021-10.3%-9.5%-17.2%
Q4 2020+5.7%-7.1%-15.2%
Q3 2020+12.9%+34.6%+45.2%
Q2 2020-2.7%-3.7%-3.2%
Q1 2020+0.2%+2.7%-1.4%
Q4 2019-4.7%-10.4%-22.4%
Q3 2019+6.4%+13.9%+12.8%
Q2 2019-0.9%-5.1%-5.3%
Q1 2019-3.1%-5.9%-10.9%
Q4 2018-0.4%+1.8%-8.2%
Q3 2018+0.7%+0.6%-1.6%
Q2 2018+0.3%-2.6%+2.5%
Q1 2018-7.3%-3.0%-7.2%
Q4 2017+3.8%+7.2%+9.9%
Q3 2017+12.2%+6.9%+11.5%
Q2 2017-4.0%-9.7%-0.7%
Q1 2017-1.6%+3.1%-7.3%
Q4 2016+0.2%+5.6%+1.2%
Q3 2016+14.2%+48.7%+33.7%
Q2 2016-0.4%+1.6%+6.2%
Q1 2016+3.7%
Q4 2015+5.9%
Q3 2015-12.8%
Q2 2015-1.4%
Q1 2015+2.8%
Q4 2014+1.1%
Q3 2014-3.3%
Q2 2014+1.7%
Q3 2010-1.4%
Q3 2011-1.4%
Q2 2010-3.3%
Q2 2011-3.3%
Q1 2011+5.2%
Q1 2010-2.9%

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