How did ALVO's Q4 2024 earnings surprise investors?

Alvotech's Q4 2024 earnings report surprised investors in several ways:

1. **Revenue Growth**: Alvotech reported a significant increase in total revenues, reaching $153.34 million for the quarter. This marked a substantial growth of 177.38% compared to the same period the previous year. This impressive revenue surge was driven by successful product launches and development milestones, particularly in the biosimilar segment.
2. **Product Revenues**: The company's product revenues skyrocketed by 460% to reach $273 million. This was attributed to the successful launch of biosimilars for major drugs like HUMIRA and STELARA in various markets.
3. **Adjusted EBITDA**: Alvotech reported a positive adjusted EBITDA of $108.3 million for the year, a stark improvement from a negative $291 million in the previous year. This indicates a significant improvement in cash flow and profitability.
4. **Net Income**: Despite the revenue growth, Alvotech reported a net loss of $66.97 million for the quarter. This was a negative surprise compared to the previous year's net income, but it is important to note that the company's net income growth rate was 75.79%.
5. **Analyst Expectations**: Analysts had set a consensus price target for Alvotech's stock, but the company did not provide earnings per share (EPS) figures that matched these expectations. The company reported an EPS loss of $0.22 for the quarter, missing the forecasted EPS of $0.01.

Overall, while Alvotech's revenue growth and positive EBITDA were positive surprises, the net loss and missed EPS expectations likely contributed to investor reactions. The company's strategic product launches and significant revenue increases suggest a promising growth trajectory, despite the current earnings shortfall.