HALO Stock Up on Q2 Earnings and Revenue Beat, Raised 2025 View

Core Insights - Halozyme Therapeutics (HALO) reported strong second-quarter 2025 adjusted earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.23, with a year-over-year increase of 69.2% [1][7] - Total revenues for the second quarter reached $325.7 million, a 41% increase year over year, surpassing the Zacks Consensus Estimate of $286 million [1][7] Revenue Drivers - The significant revenue growth was primarily attributed to increased royalty payments from Roche for Phesgo and Johnson & Johnson for subcutaneous Darzalex, as well as argenx's Vyvgart Hytrulo [2] - Royalty revenues amounted to $205.6 million, reflecting a 65% increase from the previous year, driven by strong demand for Phesgo, subcutaneous Darzalex, and Vyvgart Hytrulo [6][8] Financial Performance - Adjusted EBITDA for the second quarter was $225.5 million, marking a 64.6% increase from the prior year [9] - Product sales were reported at $81.5 million, a 3.3% increase year over year, although this fell short of the model estimate of $87.7 million [8] Guidance Update - The company raised its 2025 revenue guidance to a range of $1.28 billion to $1.36 billion, up from the previous estimate of $1.20 billion to $1.28 billion [10] - Royalty revenues are now expected to be between $825 million and $860 million, compared to the earlier forecast of $750 million to $785 million [11] - Adjusted earnings per share guidance for 2025 has been increased to a range of $6.00 to $6.40, up from $5.30 to $5.70 [11] Stock Performance - Following the positive results, shares of Halozyme rose by 5.3% in after-hours trading on August 5 [3] - Year-to-date, Halozyme's shares have increased by 27.2%, significantly outperforming the industry average rise of 1.9% [5]