Why Regeneron Pharmaceuticals Stock Topped the Market on Tuesday

News of a significant earnings beat propelled Regeneron Pharmaceuticals (NASDAQ: REGN) to a nearly 5% share price gain on the second trading day of the week. The company posted its fourth-quarter and full-year 2024 results before market open, and investors were clearly impressed by the numbers. Regeneron's price zoomed well higher than the S&P 500 index's trajectory, which was a rise of 0.7% on the day.

A crushing bottom-line beat

The quarter saw Regeneron grow its revenue by 10% year over year to just under $3.79 billion. Although non-GAAP (adjusted) net income didn't rise as precipitously, it did improve, gaining 2% to $1.39 billion. The latter figure shook out to $12.07 per share.

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That meant a double beat for the pharmaceutical company, especially on the bottom line, as analyst expectations for the period were more modest. Collectively, they were anticipating Regeneron would book $3.76 billion in revenue, filtering down to adjusted net income of $11.27 per share.

Sales of its leading product, retina disorder treatment Eylea, crept up by 2% during the period to bring in slightly under $1.5 billion. Of its remaining product sales, standouts included cancer drug Libtayo, with a robust 50% gain to $367 million. The company's collaboration revenue derived from partnerships with Sanofi and Bayer rose by 17% to nearly $1.61 billion.

Headed in the right direction

Regeneron also proffered selected guidance for the entirety of 2025. It anticipated spending $5 billion to $5.2 billion on non-GAAP research and development expenses, while capital expenditures should land at $850 million to $975 million. It did not provide revenue or profitability forecasts.

Although that's a bit atypical, all in all it was a solid earnings report for the company. Its portfolio isn't large, but it is a good mix of established and up-and-coming products, plus it's doing well with collaborations and has a robust pipeline. There is much to like about this stock these days.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool has a disclosure policy.