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On Thursday, H.C. Wainwright reaffirmed its Buy rating and $221.00 price target for Krystal Biotech (NASDAQ:KRYS) shares, following the company’s announcement of its 2024 financial results on February 19. Currently trading at $176.17, the stock has shown impressive momentum with a 57.8% return over the past year. The firm’s analyst noted that Krystal’s earnings per share (EPS) for the fourth quarter of 2024 (4Q24) and the full year (FY24) were $1.52 and $3.00, respectively. These figures fell slightly short of the analyst’s expectations, which were $1.81 for 4Q24 and $3.31 for FY24.
Despite EPS not meeting estimates, Krystal Biotech ended the year on a strong note, with total revenue from its product VYJUVEK reaching $91.1 million for 4Q24 and $290.5 million for the entire year. These numbers were also slightly below the analyst’s projections of $97.1 million for the quarter and $296.4 million for the year. The company concluded 2024 with a robust financial position, having $749.6 million in the bank. InvestingPro analysis reveals impressive gross profit margins of 92.55% and strong financial health metrics, with an overall score of 3.65 (rated as GREAT).
The analyst highlighted the success of VYJUVEK, which has been outperforming projections 18 months after its approval. The product is seen as a key factor in driving Krystal’s long-term sustainable growth. According to InvestingPro, analysts expect significant sales growth this year, with revenue forecast to grow by 473%. For deeper insights into Krystal’s growth potential and 15+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro. The company has secured over 510 reimbursement approvals nationwide as of February 2025, and it expects further growth with the anticipated launches of VYJUVEK in Europe and Japan within the year. The first launch in Germany is slated for mid-2025, followed by France. Both countries have identified a combined total of 1,000 dystrophic epidermolysis bullosa (DEB) patients, and Krystal aims to replicate its U.S. launch strategy by initially targeting this identified patient pool.
Additionally, Krystal Biotech’s expansion into Japan looks promising, with a decision from the Pharmaceuticals and Medical (TASE:BLWV) Devices Agency (PMDA) anticipated in the second half of 2025. For more insights into Krystal’s pipeline beyond VYJUVEK and the expected news flow in 2025, the analyst referred to their previous note titled "Pipeline Beyond VYJUVEK Making Headway; Steady News Flow Expected in 2025." The reiteration of the Buy rating and the $221 price target reflects the firm’s continued confidence in Krystal Biotech’s growth prospects. With a market capitalization of $5.06 billion and strong analyst consensus (1.4, indicating Strong Buy), the stock currently trades above its InvestingPro Fair Value, suggesting investors should monitor valuation metrics closely.
In other recent news, Krystal Biotech Inc. reported its Q4 2024 earnings, surpassing expectations with an earnings per share (EPS) of $1.52, compared to the anticipated $1.21. Despite a slight revenue miss, with actual revenue at $91.14 million against a forecast of $91.63 million, the company’s financial performance was robust, marked by a significant year-over-year revenue increase. The company’s net income for the quarter was reported at $45.5 million, translating to $1.58 per basic share. Analysts noted the company’s successful U.S. launch of its product ViseuVec, which contributed to the strong financial results. Krystal Biotech is also preparing for European and Japanese market entries in 2025, with expected operating expenses projected between $150 million and $175 million for the year. The company continues to invest in its pipeline programs, aiming for further expansion in international markets. Investors showed confidence in the company’s growth potential, as reflected in the stock’s positive reaction following the earnings announcement.
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