How did PLX's Q4 earnings surprise impact annual trends?

Protalix BioTherapeutics Inc (PLX) experienced a notable increase in revenue from selling goods, which grew by 31% to $53 million for the year ended December 31, 2024, compared to $40.4 million in 2023. This growth was primarily driven by an $11.8 million increase in sales to Chiesi. Despite the positive revenue trend, net income decreased to $2.9 million in 2024, down from $8.3 million in 2023. The impact of the Q4 earnings surprise on annual trends can be summarized as follows: 1. **Revenue Growth**: The most significant impact of PLX's Q4 earnings surprise was a substantial increase in revenue from selling goods. This reflected strong commercial execution and the successful completion of the Elfabrio program, which led to a significant increase in sales to Chiesi. 2. **Net Income Decline**: However, the Q4 earnings surprise did not translate into a proportional increase in net income. Instead, net income decreased, which could be attributed to various factors, including the absence of non-recurring licensing payments received in 2023. 3. **Overall Annual Trends**: When considering the full year 2024, PLX showed a revenue growth rate of 23.5%, while the Biotechs industry saw earnings growing at 21.1% annually. This indicates that Protalix BioTherapeutics has been growing earnings at a faster rate than the industry average, despite the decline in net income seen in Q4. In conclusion, while the Q4 earnings surprise had a positive impact on PLX's annual revenue trends, the net income trend was less positive due to various factors. The company's overall annual trends demonstrate a strong revenue growth rate compared to the industry average, despite the challenges in net income growth.