Why Is Halozyme Therapeutics (HALO) Down 2.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Halozyme Therapeutics (HALO). Shares have lost about 2.2% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Halozyme Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.Halozyme Beats on Q3 Earnings & Revenues, Raises 2025 ViewHalozyme reported third-quarter 2025 adjusted earnings of $1.72 per share, which beat the Zacks Consensus Estimate of $1.63. Earnings rose 35.4% year over year.Total revenues in the third quarter increased 22% year over year to $354.3 million. Revenues too surpassed the Zacks Consensus Estimate of $337 million.The top-line growth was primarily driven by an increase in product sales and higher royalty payments from Roche for Phesgo and J&J for subcutaneous Darzalex, as well as argenx’s Vyvgart Hytrulo during the third quarter.Quarter in DetailHalozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.Royalty revenues totaled $236 million in the third quarter, up 52% 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 $206.5 million.Product sales were $94.2 million in the third quarter, up 8.7% from the year-ago quarter’s level. Halozyme has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.Product sales beat our model estimate of $83.8 million.Revenues under collaborative agreements were $24 million in the third quarter, decreasing 50.4% on a year-over-year basis.Adjusted EBITDA was $248.2 million in the third quarter, reflecting a 35% increase from the prior-year quarter.Halozyme had cash, cash equivalents and marketable securities of $702 million as of Sept. 30, 2025, compared with $548.2 million as of June 30, 2025.2025 Guidance RaisedBased on the strong business performance and increased royalty revenues due to the continued strong growth of J&J’s Darzalex SC, Roche’s Phesgo and argenx’s Vyvgart Hytrulo, the company raised its total revenue guidance for 2025.Total revenues are now expected in the range of $1.30 billion to $1.38 billion compared with the earlier projection of $1.28 billion to $1.36 billion.Royalty revenues are now anticipated in the range of $850-$880 million, compared with the previous expectation of $825-$860 million.Adjusted EBITDA is now expected in the band of $885-$935 million compared with the earlier expectation of $865-$915 million.Adjusted earnings are now expected in the range of $6.10-$6.50 per share in 2025 versus the previous projection of $6.00-$6.40 per share.Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.VGM ScoresCurrently, Halozyme Therapeutics has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Halozyme Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerHalozyme Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Apellis Pharmaceuticals, Inc. (APLS), a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended September 2025 more than a month ago.Apellis Pharmaceuticals reported revenues of $458.58 million in the last reported quarter, representing a year-over-year change of +133%. EPS of $1.67 for the same period compares with -$0.46 a year ago.For the current quarter, Apellis Pharmaceuticals is expected to post a loss of $0.39 per share, indicating a change of -34.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.1% over the last 30 days.Apellis Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want 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 Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report Apellis Pharmaceuticals, Inc. (APLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks