How did BIIB's Q4 earnings surprise investors?

Biogen's (BIIB) Q4 earnings report revealed a significant decline of 21.11% in the stock price, which may have surprised investors due to the following factors: 1. **Revenue Decline**: Although Biogen's total revenue decreased by 2.5% to $2.47 billion compared to the same quarter in the previous year, it still beat analyst expectations by $4 million. This slight beat on revenue might not have been enough to positively influence the stock price given the overall negative sentiment. 2. **Earnings Per Share (EPS) Miss**: The company's EPS for Q4 2024 was $2.67, which missed analyst estimates by 12%. This significant miss likely contributed to the negative surprise, as investors were expecting a higher EPS. 3. **Analyst Estimates and Actions**: Prior to the earnings release, William Blair lowered its Q4 2024 EPS estimates for Biogen from $3.44 to $3.33. This downward revision in estimates could have foreshadowed the actual EPS figures, leading to disappointment among investors. Additionally, other analysts have set a conservative outlook for Biogen's future earnings, which might have influenced the market's perception negatively. 4. **Market Conditions and Sentiment**: The broader market conditions and sentiment towards Biogen might have played a role in the stock's reaction. For instance, the company's shares were already down 4.2% from a week ago, indicating potential bearish sentiment that could have been reinforced by the earnings report. In summary, Biogen's Q4 earnings fell short of investor expectations, leading to a significant drop in the stock price. The revenue decline, EPS miss, and analyst downgrades likely contributed to the negative surprise, exacerbated by broader market conditions. |code|Ticker|Name|Date|Percentage Change|Percentage Change YoY|market_code| |---|---|---|---|---|---|---| |BIIB|BIIB.O|Biogen|20240102|3.4548|936.5436543654366|185| |BIIB|BIIB.O|Biogen|20240103|-1.5987|-3.1951975213013233|185| |BIIB|BIIB.O|Biogen|20240104|-1.1958|-79.11923307369683|185| |BIIB|BIIB.O|Biogen|20240105|-0.9221|-420.1736111111111|185| |BIIB|BIIB.O|Biogen|20240108|0.0388||185| |BIIB|BIIB.O|Biogen|20240109|-0.8295|48.86573788682037|185| |BIIB|BIIB.O|Biogen|20240110|-0.6293||185| |BIIB|BIIB.O|Biogen|20240111|-2.7613|-317.69946389151687|185| |BIIB|BIIB.O|Biogen|20240112|0.3681||185| |BIIB|BIIB.O|Biogen|20240116|-0.7778||185|