HALO Beats Q3 Earnings & Sales Estimates, Raises '24 View, Stock Up

Core Viewpoint - Halozyme Therapeutics, Inc. reported strong third-quarter 2024 results, with adjusted earnings significantly exceeding expectations and a notable increase in total revenues, prompting an upward revision of its financial guidance for the year [1][2]. Financial Performance - Adjusted earnings for Q3 2024 were $1.27 per share, surpassing the Zacks Consensus Estimate of 99 cents and up from 75 cents per share in the same quarter last year [1]. - Total revenues for the third quarter reached $290 million, marking a 34% year-over-year increase and exceeding the Zacks Consensus Estimate of $248 million [1][2]. Revenue Breakdown - Royalty revenues amounted to $155.1 million, a 36% increase from the previous year, driven by strong demand for Phesgo and subcutaneous Darzalex, and exceeded the model estimate of $134.5 million [4]. - Product sales were $86.7 million, nearly matching the previous year's figure and beating the model estimate of $76.7 million [6]. - Revenues from collaborative agreements rose significantly to $48.4 million from $15 million in the prior year [7]. Adjusted EBITDA and Cash Position - Adjusted EBITDA for Q3 was $184 million, reflecting a 60% increase from the prior year [7]. - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $666.3 million, up from $529 million as of June 30, 2024 [7]. 2024 Financial Guidance - Halozyme raised its 2024 revenue guidance to a range of $970 million to $1.02 billion, indicating year-over-year growth of 13% to 22% [8]. - Royalty revenues are now expected to be between $550 million and $565 million, an increase from the previous estimate of $520 million to $555 million [8]. - Collaboration revenues are projected to contribute $130 million to $150 million, while product sales are anticipated to be in the range of $290 million to $305 million for 2024 [9]. - Adjusted EBITDA is expected to be between $595 million and $625 million, representing a growth of 40% to 47% year-over-year [9]. - The company forecasts adjusted earnings per share in the range of $4.00 to $4.20, indicating an improvement of 44% to 52% year-over-year [10].