What happened
Typically, when a publicly traded company reports an estimates-beating quarter, its stock price rises in reaction. There are always exceptions, though, and on Tuesday it was Biogen's (BIIB 3.18%) turn to be atypical.
After Biogen published second-quarter figures that featured top- and bottom-line beats, the biotech's stock nevertheless took a hit. It sank by 2.4%; perhaps investors were concerned with the looming round of job cuts announced by the company.
So what
There wasn't much to dislike in Biogen's quarterly earnings. It booked revenue of just under $2.46 billion, which -- although 5% beneath the result of the year-ago quarter -- handily beat the average prognosticator estimate of $2.37 billion.
The dynamic was similar on the bottom line, where adjusted net income fell to a shade below $585 million, from the second-quarter 2022 result of $767 million. That shook out to $4.02 per share; analysts had been projecting only $3.78.
Biogen has been a notable company in the biotech space recently. In early July, the U.S. Food and Drug Administration (FDA) approved its Alzheimer's drug Leqembi, although concerns remain about its safety and cost.
Now what
Biogen didn't only provide the financial particulars of its second quarter in the release. It also said that it is launching what it calls its Fit for Growth program of cost rationalizations. This will include a net reduction of around 1,000 workers; the company promised that Fit for Growth will save around $1 billion in gross operating expenses.
