Shares of Xeris Pharmaceuticals Inc (XERS) plunged 16.41% in early trading on Thursday, following the company's third-quarter earnings report that fell short of expectations and a downward revision to its 2025 revenue guidance.
The biopharmaceutical company reported Q3 product revenue of $74.063 million, slightly missing the analyst estimate of $74.2 million. Despite posting its first-ever quarterly net income of $621,000, investors seemed more focused on the company's updated outlook. Xeris revised its 2025 revenue guidance to a range of $285-$290 million, down from its previous forecast, signaling potential headwinds in its growth trajectory.
While Xeris highlighted strong growth across its product portfolio, particularly for its Cushing's syndrome treatment Recorlev, which saw a 109% year-over-year increase in revenue to $37 million, the market reaction suggests concerns about the company's ability to meet long-term growth expectations. The lowered guidance, combined with the slight revenue miss, appears to have triggered a significant sell-off as investors reassess the company's near-term prospects in a competitive pharmaceutical landscape.
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