Guardian Pharmacy Services, Inc. (NYSE: GRDN) saw its stock plummet 5.14% in Friday's trading session following the release of its full-year 2024 financial results. The sharp decline comes as the company reported a significant net loss and missed earnings per share (EPS) expectations, despite posting revenue growth.
For the fiscal year 2024, Guardian Pharmacy Services reported revenue of $1.23 billion, representing a 17% increase from the previous year. However, the company swung to a net loss of $87.3 million, a stark contrast to the $23.9 million profit recorded in fiscal year 2023. The EPS came in at a loss of $1.41 per share, missing analyst estimates by a considerable 48%. This dramatic shift in profitability appears to have spooked investors, leading to the sell-off.
The company's cost of sales amounted to 80% of total revenue, highlighting pressure on margins. Additionally, general and administrative costs accounted for 91% of total expenses, suggesting potential operational inefficiencies. As Guardian Pharmacy Services grapples with these financial challenges, investors may be reassessing the company's growth prospects and profitability potential in the competitive pharmacy services sector. The market's reaction indicates concerns about the company's ability to translate revenue growth into bottom-line results in the near term.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.