Emergent BioSolutions Stock Sinks As Q4 Revenue Plunges 30%, But Retail Clings To Profit Swing

Shares of Emergent BioSolutions plunged more than 8% in after-hours trading on Monday after the company reported a steep revenue drop in the fourth quarter. 

While Emergent swung to a profit, the earnings beat failed to offset concerns over its shrinking top line.

The medical contract development and manufacturing firm posted adjusted net income of $0.05 per diluted share, a sharp reversal from the $0.77 per share loss a year earlier. Analysts had expected a loss of $0.43 per share. 

However, quarterly revenue fell to $194.7 million from $276.6 million a year ago, well below the consensus estimate of $249.5 million.

For the first quarter, Emergent forecasted revenue in the range of $200 million to $240 million, lower than an analyst estimate of $279 million. 

For 2025, the company projected revenue of $750 million to $850 million, significantly trailing the $1.11 billion analysts had expected.

“We delivered favorable full-year financial results driven by our core products, all the while completing a series of strategic stabilization actions to strengthen our financial position ahead of plan,” CEO Joe Papa said. 

“This strong foundation enables Emergent to focus on profitable revenue growth and cash generation as we move forward with turnaround activities, a critical phase in our multi-year transformation plan.”

Despite the revenue shortfall, retail traders on Stocktwits remained optimistic, with sentiment for EBS ending Monday in the ‘bullish’ zone. 

Many users focused on the company’s improving profitability rather than its shrinking revenue. 

One trader compared the current situation to a period before Emergent had its Narcan opioid overdose nasal spray in its portfolio, arguing that profitability was the key factor.

Another user pointed to CEO Joe Papa’s comments on the earnings call, noting that the company’s 2025 guidance appeared “conservative.” 

Some traders speculated that Emergent’s mpox vaccine sales had not yet been factored into the guidance. 

While the company’s smallpox vaccine has been used for mpox, it has not yet received formal FDA approval for that indication.

Emergent BioSolutions shares are down more than 28% year-to-date but have more than doubled over the past 12 months.

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