Shares of Tarsus Pharmaceuticals, Inc. (TARS) are down 7.95% in pre-market trading on Friday, despite the company reporting better-than-expected first-quarter results. The significant drop suggests investors may be focusing on other factors beyond the headline numbers.
For the quarter ended March 31, Tarsus reported an adjusted loss of 64 cents per share, narrower than the analysts' consensus estimate of a 73 cents per share loss. Revenue surged 183.7% year-over-year to $78.34 million, also surpassing Wall Street expectations of $72.47 million. However, the company still posted a substantial quarterly loss of $25.12 million.
While Tarsus beat estimates on both top and bottom lines, the pre-market plunge may indicate investor concerns about the company's path to profitability or potential headwinds in the pharmaceutical sector. It's worth noting that analysts' mean earnings estimates for Tarsus had fallen by about 20.6% over the past three months, suggesting some anticipation of challenges. Despite the current drop, Wall Street maintains a largely positive outlook on TARS, with a median 12-month price target of $73.00 and a consensus "strong buy" rating.
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