NASDAQ$HALO

Halozyme Therapeutics Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year ended December 31, 2019.

Halozyme's fourth-quarter revenue was $53.7 million, compared to $60.2 million for the fourth quarter of 2018. The net loss for the fourth quarter was $34.4 million, or $0.24 per share, compared to a net loss in the fourth quarter of 2018 of $2.1 million, or $0.01 per share. The company completed $200 million worth of share repurchases under the Board of Directors authorized capital return program.

  • Halozyme is reiterating its 2020 financial guidance ranges as first announced on January 14, 2020.
  • Janssen selected for development with ENHANZE® the targets EGFR and cMET on an exclusive basis as part of the bispecific antibody (JNJ-61186372), which is being studied in solid tumors.
  • Company plans to repurchase up to an additional $150M worth of shares in 2020.
  • Strategic actions to reposition the Company with a focus on its ENHANZE® drug delivery technology and immediately implemented a restructuring following the announcement of results of the HALO-301 clinical study.

Headline financials

Total Revenue

$53.7M

Previous: $60.2M-10.9%
EPS (adj)

-$0.24

Previous: -$0.01-2300.0%
Capital Expenditures

$641K

Previous: $3.07M-79.1%
Free Cash Flow

-$27.3M

Previous: $7.39M-469.0%
Net Income

-$34.4M

Previous: -$2.13M-1517.9%
Operating Income

-$32.1M

Previous: -$71K-45057.7%
Gross Profit

$37M

Previous: $5.06M+631.4%
Cash & Equivalents

$120M

Previous: $57.9M+107.4%
Total Assets

$566M

Previous: $440M+28.5%
Stock-Based Comp

$7.23M

Previous: $9.01M-19.8%

Revenue & EPS history

Halozyme · Revenue · Quarterly

$53.7M

Q4 2019-10.9%vs Q4 2018
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Halozyme · $31M total across 2 segments · Q4 2019

  • Royalties
    $17.2M
  • Revenues under collaborative agreements
    $13.7M

Forward guidance

Halozyme is reiterating its 2020 financial guidance ranges as first announced on January 14, 2020. For 2020 Halozyme expects 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 with the first quarter of sustainable profitability beginning in Q2 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
  • First quarter of sustainable profitability beginning in Q2 2020
  • Multiple events that will grow the value of our ENHANZE® technology in 2020.
  • Transition to profitability and plans for continued return of capital

Headwinds

  • Unexpected levels of revenues, expenditures and costs
  • 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
  • Unexpected adverse events
  • Competitive conditions

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 Q4 2019

Historical avgQ4 2019

+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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