Alvotech (NASDAQ:ALVO) shares plummeted 5.02% in Friday's pre-market trading session following the release of its full-year 2024 financial results. Despite reporting strong revenue growth, the company's earnings per share (EPS) fell significantly short of analyst estimates, disappointing investors.

The biopharmaceutical company reported a substantial 427% year-over-year increase in revenue, reaching US$492.0 million and exceeding analyst expectations by 8.3%. However, Alvotech's bottom line told a different story. The company posted a net loss of US$231.9 million, translating to a loss of US$0.87 per share. While this represented an improvement from the previous year's US$2.43 loss per share, it missed analyst estimates by a concerning 65%.

The market's negative reaction highlights investors' concerns about Alvotech's profitability despite its impressive top-line growth. The company's ability to control costs and translate revenue growth into earnings will likely be a key focus for investors moving forward. Additionally, the report mentioned two warning signs for Alvotech, including one described as "a bit unpleasant," which may have further contributed to the stock's decline.