TG Therapeutics (TGTX, Financial) experienced a notable decline in its stock price, falling by 12.52% as investors reacted to its recent earnings report. Despite showcasing impressive revenue growth, the market's expectations for profit appeared to be unmet, which likely contributed to the sell-off.
In its latest financial disclosure, TG Therapeutics announced an impressive revenue of nearly $121 million, nearly doubling from the $63.5 million reported during the same period in 2024. The company achieved a net profit of just over $5 million, translating to $0.03 per share. This marks a significant turnaround from a loss of almost $11 million the previous year. However, the earnings per share fell short of analysts' expectations, which were pegged at $0.16, although revenue forecasts were slightly underestimated at $117 million.
TG Therapeutics relies significantly on its multiple sclerosis drug, Briumvi, for revenue. The company is actively expanding its pipeline, with two phase 1 trials for the drug currently underway. One of these trials focuses on subcutaneous use in relapsing MS patients, while the other targets the treatment of myasthenia gravis. Furthermore, the company is progressing with its chimeric antigen receptor (CAR) T cell therapy, azercabtagene zapreleucel, now in the enrollment phase of a phase 1 trial.
Looking ahead, TG Therapeutics has revised its guidance for Briumvi's U.S. sales and overall revenue for 2025. The company now projects domestic sales to reach $560 million, up from the previous estimate of $525 million, and total revenue to increase to $575 million, up from $540 million. Despite robust sales figures, the market response indicates a demand for stronger profit performance.
When evaluating TG Therapeutics (TGTX, Financial) from a valuation perspective, the company's stock is currently trading at $38. The stock's PE ratio stands at 271.43, hovering near a one-year high. According to GF Value, the stock is categorized as a "Possible Value Trap," suggesting caution for potential investors. The stock's market capitalization is $5,968.69 million, and it has shown a significant 134.71% increase over the past year. However, with five medium warning signs and three severe ones, investors must carefully consider the company's financial health before making investment decisions.
