What Happened?
Shares of biotech company BioMarin Pharmaceutical (NASDAQ: BMRN) jumped 4.5% in the morning session after the company reported third-quarter earnings, which featured a significant earnings miss but a slight increase in its full-year revenue forecast.
The biotech company's revenue grew 4.1% year-over-year to $776.1 million, in line with analyst expectations. However, its adjusted earnings per share of $0.12 fell 62.5% short of Wall Street's consensus estimates. Looking ahead, BioMarin slightly lifted its full-year revenue guidance to $3.18 billion at the midpoint but also cut its adjusted earnings per share forecast by over 20%. Despite the earnings shortfall and lowered profit outlook, investors appeared to focus on the modest revenue guidance increase and a notable improvement in the company's free cash flow margin, which rose to 43.8% from 27.2% in the same quarter last year.
After the initial pop the shares cooled down to $54.62, up 3.6% from previous close.
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What Is The Market Telling Us
BioMarin Pharmaceutical’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 3.3% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
BioMarin Pharmaceutical is down 17.9% since the beginning of the year, and at $54.62 per share, it is trading 25% below its 52-week high of $72.83 from March 2025. Investors who bought $1,000 worth of BioMarin Pharmaceutical’s shares 5 years ago would now be looking at an investment worth $734.24.
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