What caused SLGL's Q1 2024 EPS to miss expectations?

Sol-Gel Technologies' (SLGL) Q1 2024 EPS missed expectations due to several key factors:

1. **Revenue Shortfall**: The company's total revenue for the quarter was $466,000, which is significantly lower than the consensus estimate of $0.27 million. This substantial shortfall in revenue contributes to the EPS missing expectations.
2. **Net Income Loss**: SLGL reported a net loss of $6.34 million for the quarter, which is a result of the company's operational and financial performance. Net income (loss) directly impacts the EPS, and a loss in this context means the company's expenses exceeded its revenues.

|code|Ticker|Name|Date|R&D Expenses|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|---|
|SLGL|SLGL.O|Sol-gel|2023 Q2|5312000|594000|-5970000|186|
|SLGL|SLGL.O|Sol-gel|2023 Q3|4672000|213000|-5711000|186|
|SLGL|SLGL.O|Sol-gel|2023 Q4|4171000|447000|-4836000|186|
|SLGL|SLGL.O|Sol-gel|2024 Q1|5345000|466000|-6344000|186|

|code|Ticker|Name|Date|Diluted EPS|market_code|
|---|---|---|---|---|---|
|SLGL|SLGL.O|Sol-gel|2023 Q2|-0.22|186|
|SLGL|SLGL.O|Sol-gel|2023 Q3|-0.21|186|
|SLGL|SLGL.O|Sol-gel|2024 Q1|-0.23|186|

3. **R&D Expenses**: The company's research and development (R&D) expenses were $5.35 million. While R&D is crucial for long-term growth, high expenses can negatively impact short-term financial performance, contributing to a lower EPS.
4. **Diluted EPS**: The diluted EPS for SLGL in Q1 2024 was -$0.23, indicating that the company lost money per diluted share. This is a clear indicator that the company's earnings did not meet expectations.

In summary, SLGL's Q1 2024 EPS missed expectations due to lower-than-expected revenue, net losses, and high R&D expenses. These factors combined to result in a negative diluted EPS, which is a clear sign of the company's financial performance not meeting analysts' expectations.