Shares of Amphastar Pharmaceuticals Inc. (AMPH) took a nosedive on Tuesday, plummeting over 10% in after-hours trading, following the company's release of its third-quarter 2024 financial results. The sharp decline in stock price was driven by Amphastar's disappointing performance, with both revenue and earnings falling short of analysts' expectations.

For the quarter ended September 30, 2024, the pharmaceutical company reported revenue of $191.21 million, a 5.9% increase year-over-year but missing the consensus estimate of $194.69 million. Adjusted earnings per share (EPS) came in at $0.96, lower than the expected $1.01, highlighting the company's profitability challenges.

While Amphastar saw robust sales growth in key products like BAQSIMI, Primatene MIST, and epinephrine, these gains were partially offset by declines in the sales of glucagon, enoxaparin, and naloxone. Furthermore, the company faced significant cost pressures, including higher labor costs, increased component costs, and charges related to adjusting inventory and purchase commitments. These factors weighed heavily on Amphastar's gross margin, which contracted to 53.3% from 60% in the year-ago quarter, impacting overall profitability.