Can LGND sustain its earnings momentum into 2025?

**Ligand Pharmaceuticals (LGND) faces significant challenges in sustaining its earnings momentum into 2025**, based on the following points:

1. **Recent Performance**: LGND reported a net loss of $31.09 million and a decline of 3.43% in diluted EPS in Q4 2024, compared to a profit of $18.19 million and a higher EPS in the same period the previous year. Despite a 52.35% increase in total revenue to $42.81 million, the company's financial performance indicates a downturn.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|LGND|LGND.O|Ligand|2024 Q1|105.34220124436817|-29.56183633097615|103.862660944206|185|
|LGND|LGND.O|Ligand|2024 Q2|-2366.8558951965065|57.51725707350376|-2315.384615384615|185|
|LGND|LGND.O|Ligand|2024 Q3|30.18592426749732|57.6366070341974|33.89830508474576|185|
|LGND|LGND.O|Ligand|2024 Q4|-270.92588519903234|52.35045016191595||185|

2. **Strategic Outlook**: While LGND has confirmed a fiscal 2025 forecast with expectations of adjusted EPS between $6.00 to $6.25 and total revenue of $180 million to $200 million, the projected figures do not match the analyst estimates of $6.14 EPS and $188.77 million revenue for the full year. This discrepancy suggests caution regarding the sustainability of earnings growth.
3. **Market Analysts' Sentiments**: There is no available data on the average analyst price target or consensus rating for LGND. However, given the recent decline in earnings and the discrepancy between the company's forecast and analyst estimates, it is prudent to consider that the stock may not be favored by analysts for a strong rebound in 2025.
4. **Challenges and Uncertainties**: The biopharmaceutical sector is highly competitive and subject to regulatory risks, patent expirations, and the need for continuous innovation. LGND's ability to navigate these challenges and sustain earnings growth will be crucial for its future performance.

In conclusion, while LGND has a strategic outlook and revenue growth projections for 2025, the discrepancy with analyst estimates, recent decline in earnings, and inherent uncertainties in the biopharmaceutical sector suggest that sustaining earnings momentum could be challenging for LGND in the upcoming year.