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BioMarin's Q4 earnings surpass estimates, but 2024 guidance falls short

EditorNatashya Angelica
Published 2024-02-22, 04:28 p/m
© Reuters.
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SAN RAFAEL, Calif. - BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) reported a stronger-than-expected performance for the fourth quarter, with earnings and revenue exceeding analyst estimates.

The company's adjusted earnings per share (EPS) for Q4 came in at $0.49, surpassing the consensus estimate of $0.20. Revenue for the quarter was $646.2 million, also above the analyst expectation of $639.26 million.

Despite the robust quarter, BioMarin's stock dipped slightly by 1.36% as the company's financial outlook for 2024 fell short of Wall Street expectations. BioMarin anticipates adjusted EPS for FY2024 to be between $2.60 and $2.80, while analysts were targeting $2.83. The company's revenue guidance for the same period is projected to be between $2.7 billion and $2.8 billion, compared to the consensus estimate of $2.82 billion.

The fourth quarter earnings were primarily driven by strong sales of VOXZOGO, the only approved treatment for children with achondroplasia, which saw a significant increase in prescriptions, particularly in the United States for children under the age of 5 following FDA approval. VOXZOGO's net revenues for Q4'23 reached $146 million, marking a remarkable 118% increase from the previous quarter.

Alexander Hardy, BioMarin's CEO, attributed the financial success to global demand for VOXZOGO and contributions from established enzyme products. He expressed optimism for 2024, stating, "Our full-year financial guidance reflects our focus on value creation through achievement of four strategic priorities outlined earlier this year."

Looking ahead, BioMarin is set to continue its focus on maximizing the VOXZOGO opportunity and building out global access channels for ROCTAVIAN, another of its products. The company also plans to prioritize impactful R&D candidates and drive operational excellence and cost optimization.

BioMarin's 2024 financial outlook reflects anticipated double-digit total revenue growth, significant non-GAAP operating margin expansion, and non-GAAP earnings per share growing faster than revenues. However, the market's response to the guidance falling short of consensus may indicate investor concerns about the company's ability to meet high expectations in the coming year.

InvestingPro Insights

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has demonstrated a robust financial performance in the latest quarter, as indicated by the reported earnings and revenue. According to InvestingPro, the company's market capitalization stands at a solid $16.95 billion, reflecting its substantial presence in the biopharmaceutical industry. Despite the positive earnings report, BioMarin's stock trades at a high earnings multiple, with a P/E ratio of 114.42, which may suggest that the market has high expectations for the company's future earnings potential.

InvestingPro Tips highlight that BioMarin is expected to see net income growth this year, which aligns with the company's optimistic guidance and strong sales of VOXZOGO. Additionally, analysts predict BioMarin will be profitable this year, supported by the company's performance over the last twelve months. However, the stock is currently trading at a high EBITDA valuation multiple, indicating that it may be priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.

With a focus on BioMarin's valuation and profitability, investors may find value in the additional 10 InvestingPro Tips available, which provide deeper insights into the company's financial health and stock performance. For those interested in a comprehensive analysis, a subscription to InvestingPro offers a wealth of information, and using the coupon code PRONEWS24 will secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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