Why Is Regeneron (REGN) Down 4.1% Since Last Earnings Report?

Core Viewpoint - Regeneron Pharmaceuticals reported strong fourth-quarter earnings, beating estimates, but faces challenges with certain product sales and competition, leading to mixed investor sentiment ahead of the next earnings report [2][10]. Financial Performance - Regeneron reported Q4 2024 EPS of $12.07, exceeding the Zacks Consensus Estimate of $11.62, and up from $11.86 in the previous year [2]. - Total revenues for Q4 increased by 10% year over year to $3.79 billion, slightly surpassing the Zacks Consensus Estimate of $3.78 billion [3]. - For the full year 2024, Regeneron recorded revenues of $14.202 billion, an 8% increase from 2023, and EPS rose to $45.62 from $43.79, also beating estimates [10]. Product Sales - Eylea's sales in the U.S. declined by 11% year over year to $1.2 billion due to increased competition, while Eylea HD generated $305 million in the U.S. [4][5]. - Total Eylea and Eylea HD sales in the U.S. were $1.49 billion, a 2% increase year over year, but missed the Zacks Consensus Estimate by 4.29% [5]. - Collaboration revenues from Sanofi and Bayer totaled $1.61 billion, a 17.3% increase year over year, but fell short of the Zacks Consensus Estimate of $1.69 billion [6]. Collaboration and Pipeline Updates - Sanofi's collaboration revenues rose by 22% to $1.2 billion, driven by higher Dupixent sales, which increased by 15% year over year to $3.7 billion [7]. - Regeneron plans to submit a supplemental biologics license application for Eylea HD in early 2025 and has several other regulatory submissions pending [12][14]. Dividend and Share Repurchase - Regeneron initiated a quarterly cash dividend program, declaring a dividend of $0.88 per share, and authorized a $3.0 billion share repurchase program, increasing total capacity to approximately $4.5 billion [11]. Market Sentiment and Estimates - Recent estimates for Regeneron have flatlined, with a consensus estimate shift of -10.87% over the past month [15]. - The company currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [17].