TG Therapeutics Boosts Retail Sentiment With Q1 Revenue Beat Even As Stock Tumbles On Profit Miss, Conservative Outlook

Investors are optimistic about the company’s prospects, particularly in the multiple sclerosis market, despite challenges from competitors.

Retail sentiment surrounding TG Therapeutics Inc. (TGTX) surged following the company’s first-quarter (Q1) earnings report, which showed revenue of $120.856 million surpassing consensus estimates of $117.86 million. 

Despite this, shares dropped 13.26% on Monday to $37.68, their lowest levels since April 11. 

The decline followed a notable earnings per share (EPS) miss, with actual EPS of $0.03 coming in below the $0.16 forecast.

However, the stock saw a slight recovery in after-hours trading, rising 0.19% to $37.75.

The company reported $119.7 million in U.S. net sales for Briumvi, its multiple sclerosis treatment, which received positive feedback from both healthcare providers and patients. 

CEO Michael Weiss highlighted the strong sales growth, noting that it reflects increasing confidence in the treatment. 

He further said that the momentum supports the belief that BRIUMVI could become the leading anti-CD20 treatment in the market. 

Despite this strong Q1 performance, the company acknowledged an ongoing competitive market with a recently launched product, which may put pressure on future growth.

While the company indicated that Q2 is off to a strong start, its modest increase in guidance suggests potential challenges in maintaining the current growth trajectory. 

Additionally, the focus on simplifying the patient experience and developing a subcutaneous formulation of Briumvi hints at challenges with the current IV administration, potentially reflecting limitations in the existing product.

Briumvi, a monoclonal antibody therapy, targets B-cells involved in the immune response that causes nerve damage in multiple sclerosis. 

TG Therapeutics is also advancing a subcutaneous formulation of BRIUMVI and developing azer-cel for progressive MS.

On Stocktwits, sentiment was described as "extremely bullish" amid a 2206% increase in 24-hour message volume. 

One user expressed frustration over the company’s conservative guidance, suggesting that lowball estimates could be a tactic for future "beat and raise" opportunities, though they also expressed optimism that the stock could rebound to $45. 

Another user, more confident in the long-term potential, described TG Therapeutics as a "beast" in the small-cap biotech space, noting that they have profited significantly from the stock in the past and would continue to buy if the price dips.

According to Koyfin, TG Therapeutics holds an average analyst rating of 4.38 out of 5. 

Of the 8 analysts covering the stock, 2 analysts rated it as ‘Strong Buy’, 5 as ‘Buy,’ and 1 as ‘Strong Sell.’ 

Shares of TG Therapeutics have risen 21.3% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<