What's the outlook for XOMA's 2025 Q1 EPS?

**XOMA's 2025 Q1 EPS outlook is cautious.** Here's a detailed analysis:

1. **Recent Performance and Challenges**: XOMA reported a net loss of $4.0 million for the fourth quarter of 2024, which is a significant improvement from the $20.1 million loss in the same period of 2023. However, the company's earnings per share (EPS) was -$0.30 for the quarter, which met expectations but reflects ongoing challenges in the biotechnology sector.
2. **Strategic Moves and Portfolio Growth**: In 2024, XOMA expanded its royalty and milestone portfolio to over 120 assets, doubling its portfolio through strategic acquisitions. This significant growth in portfolio size could potentially lead to increased future revenue streams.
3. **Financial Position and Cash Flow**: XOMA ended 2024 with $106.4 million in cash and cash equivalents. While this provides a strong financial foundation, the company's increased interest expense, which rose to $3.4 million in Q4 2024 compared to $0.6 million in the same quarter of 2023, is a factor to monitor.
4. **Market Conditions and Industry Trends**: The biotech sector is influenced by market conditions and regulatory factors. XOMA's performance is also affected by the success of its partner companies' clinical trials and commercial sales.
5. **Economic and Policy Uncertainties**: Economic uncertainty, including potential impacts of trade policies and labor market data, can affect investor sentiment and corporate performance.

In conclusion, while XOMA's strategic expansions and financial stability provide some positive indicators, the negative EPS and increased interest expenses signal caution. The biotech sector's volatility and external factors like economic conditions and regulatory news articles suggest that XOMA's 2025 Q1 EPS outlook should be monitored closely. Investors should consider these factors when assessing XOMA's future earnings potential.