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

Halozyme Therapeutics HALO reported fourth-quarter 2024 adjusted earnings of $1.26 per share, which beat the Zacks Consensus Estimate of $1.16. The company had recorded adjusted earnings of 82 cents per share in the year-ago period.See the Zacks Earnings Calendar to stay ahead of market-making news.Total revenues in the fourth quarter increased 30% year over year to $298 million. Revenues surpassed the Zacks Consensus Estimate of $284 million.The top-line growth was primarily driven by higher royalty payments from Roche RHHBY for Phesgo and J&J JNJ for subcutaneous Darzalex (daratumumab) as well as an increase in milestone revenues during the quarter.Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo.Shares of Halozyme were up 1.9% in after-hours trading on Feb 18, owing to the better-than-expected results.In the past year, shares of Halozyme have rallied 60.8% against the industry’s decline of 8.5%.Image Source: Zacks Investment ResearchMore on HALO's Q4 EarningsHalozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.Royalty revenues totaled $170.4 million in the fourth quarter, up 40% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo on which it earns royalties. Royalty revenues beat our model estimate of $155.1 million.Product sales were $79.4 million, almost in line with the year-ago quarter figure. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022. Product sales beat our model estimate of $77 million.Revenues under collaborative agreements were $48.2 million in the fourth quarter, increasing 69.7% on a year-over-year basis.Adjusted EBITDA was $195.8 million in the fourth quarter, reflecting a 60.9% increase from the prior-year quarter.Halozyme had cash, cash equivalents and marketable securities of $596.1 million as of Dec. 31, 2024, compared with $666.3 million as of Sept. 30, 2024.HALO's Full-Year ResultsFor 2024, Halozyme generated revenues of $1.02 billion, reflecting a 22% increase year over year. This is the first time that the company has managed to breach the $1 billion mark in total revenues.For the same period, the company reported adjusted earnings of $4.23 per share, up from earnings of $2.77 per share in the year-ago period.HALO's 2025 GuidanceThe company reiterated its total revenue guidance for 2025, which it had provided last month.Total revenues are expected in the range of $1.15 billion to $1.22 billion in 2025, implying year-over-year growth of 13% to 21%.Total revenues are expected to grow on increased royalty revenues due to the continued strong growth of JNJ’s Darzalex SC and RHHBY’s Phesgo and higher product sales from Xyosted.Royalty revenues are anticipated in the range of $725-$750 million, implying year-over-year growth of 27% to 31%.Adjusted EBITDA is expected in the band of $755-$805 million, implying year-over-year growth of 19% to 27%.Adjusted earnings are now expected in the range of $4.95-$5.35 per share in 2025, implying growth of 17% to 26% year over year.HALO’s earnings per share guidance does not consider the impact of potential future share repurchases.Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. QuoteHALO's Zacks Rank & A Stock to ConsiderHalozyme currently carries a Zacks Rank #3 (Hold).A top-ranked stock in this space is Pacira BioSciences, Inc. PCRX, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, estimates for Pacira BioSciences’ earnings per share have increased from $2.79 to $3.46 for 2025. In the past year, shares of PCRX have decreased 9.1%.PCRX’s earnings beat estimates in two of the trailing four quarters, met the same once and missed the same on the remaining occasion, the average surprise being 7.13%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report Pacira BioSciences, Inc. 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