HALO's Q4 Earnings Beat, Higher Royalties Drive Revenue Growth

Core Viewpoint - Halozyme Therapeutics reported strong fourth-quarter results for 2024, with adjusted earnings and revenues exceeding expectations, driven by increased royalty payments and milestone revenues from partnerships with Roche and Johnson & Johnson [1][2][5]. Financial Performance - Adjusted earnings for Q4 2024 were $1.26 per share, surpassing the Zacks Consensus Estimate of $1.16, and up from $0.82 per share in the same quarter last year [1]. - Total revenues for Q4 2024 reached $298 million, a 30% increase year over year, exceeding the Zacks Consensus Estimate of $284 million [2]. - Royalty revenues amounted to $170.4 million, a 40% increase from the previous year, driven by strong demand for Phesgo and subcutaneous Darzalex [5]. - Product sales were $79.4 million, nearly matching the previous year's figures, and also beating the model estimate of $77 million [6]. - Revenues from collaborative agreements increased by 69.7% year over year to $48.2 million [8]. - Adjusted EBITDA for Q4 was $195.8 million, reflecting a 60.9% increase from the prior year [8]. Annual Results - For the full year 2024, Halozyme generated revenues of $1.02 billion, marking a 22% increase year over year and the first time surpassing the $1 billion mark [9]. - Adjusted earnings for the full year were $4.23 per share, up from $2.77 per share in the previous year [9]. Future Guidance - For 2025, total revenue is expected to be between $1.15 billion and $1.22 billion, indicating a year-over-year growth of 13% to 21% [10]. - Royalty revenues are projected to be in the range of $725 million to $750 million, reflecting a growth of 27% to 31% [11]. - Adjusted earnings per share for 2025 are anticipated to be between $4.95 and $5.35, representing a growth of 17% to 26% year over year [11]. Stock Performance - Shares of Halozyme increased by 1.9% in after-hours trading following the earnings report [3]. - Over the past year, Halozyme's shares have risen by 60.8%, contrasting with an 8.5% decline in the industry [4].