Why Did Regeneron Plunge 7.51% on Mixed Earnings?

On April 29, 2025, Regeneron's stock experienced a significant drop of 7.51% in pre-market trading, reflecting investor concerns and market sentiment.

Regeneron's first-quarter 2025 financial results showed a mixed performance. The company reported revenues of $3.0 billion, a 4% decline year-over-year from $3.1 billion in the same period last year. Despite the revenue drop, GAAP diluted earnings per share (EPS) increased by 16% to $7.27 from $6.27 in the previous year. This increase in EPS was driven by cost management and operational efficiencies.

Regeneron's adjusted earnings for the first quarter were $8.22 per diluted share, down from $9.55 a year earlier. This decline in adjusted earnings was attributed to higher research and development expenses, which the company projected to be between $5.56 billion and $5.795 billion for the full year 2025. The company's focus on innovation and development has led to increased spending in this area, which is expected to drive future growth.

Regeneron's stock price had previously increased by 7% over the past week, coinciding with the European Commission's regulatory approval for one of its key products. This approval is expected to boost the company's revenue and market presence in the European region. However, the recent drop in stock price suggests that investors are cautious about the company's financial performance and future prospects.