Specialty pharmaceutical company ANI Pharmaceuticals (NASDAQ: ANIP) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 43.4% year on year to $197.1 million. The company’s full-year revenue guidance of $780.5 million at the midpoint came in 1.4% above analysts’ estimates. Its non-GAAP profit of $1.70 per share was 23% above analysts’ consensus estimates.
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ANI Pharmaceuticals (ANIP) Q1 CY2025 Highlights:
- Revenue: $197.1 million vs analyst estimates of $179.6 million (43.4% year-on-year growth, 9.8% beat)
- Adjusted EPS: $1.70 vs analyst estimates of $1.38 (23% beat)
- Adjusted EBITDA: $50.75 million vs analyst estimates of $42.4 million (25.7% margin, 19.7% beat)
- The company lifted its revenue guidance for the full year to $780.5 million at the midpoint from $766 million, a 1.9% increase
- Management raised its full-year Adjusted EPS guidance to $6.45 at the midpoint, a 2.2% increase
- EBITDA guidance for the full year is $200 million at the midpoint, above analyst estimates of $195.8 million
- Operating Margin: 13.3%, down from 14.8% in the same quarter last year
- Market Capitalization: $1.45 billion
“We are pleased to report another strong quarter, with record revenue, adjusted EBITDA and adjusted EPS driven by continued strong demand for Cortrophin Gel, exceptional performance for our Generics business, and increased demand for our Brands portfolio,” said Nikhil Lalwani, President and CEO of ANI.
Company Overview
With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ: ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, ANI Pharmaceuticals grew its sales at an exceptional 27.1% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. ANI Pharmaceuticals’s annualized revenue growth of 37.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, ANI Pharmaceuticals reported magnificent year-on-year revenue growth of 43.4%, and its $197.1 million of revenue beat Wall Street’s estimates by 9.8%.
Looking ahead, sell-side analysts expect revenue to grow 16.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and implies the market sees success for its products and services.
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Operating Margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.
ANI Pharmaceuticals was roughly breakeven when averaging the last five years of quarterly operating profits, lousy for a healthcare business.
On the plus side, ANI Pharmaceuticals’s operating margin rose by 3.4 percentage points over the last five years, as its sales growth gave it operating leverage. The company’s two-year trajectory shows its performance was mostly driven by its recent improvements.
In Q1, ANI Pharmaceuticals generated an operating profit margin of 13.3%, down 1.5 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
ANI Pharmaceuticals’s EPS grew at an unimpressive 3.5% compounded annual growth rate over the last five years, lower than its 27.1% annualized revenue growth. However, its operating margin actually expanded during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.
We can take a deeper look into ANI Pharmaceuticals’s earnings to better understand the drivers of its performance. A five-year view shows ANI Pharmaceuticals has diluted its shareholders, growing its share count by 68.4%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals. 
In Q1, ANI Pharmaceuticals reported EPS at $1.70, up from $1.21 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ANI Pharmaceuticals’s full-year EPS of $5.69 to grow 13.1%.
Key Takeaways from ANI Pharmaceuticals’s Q1 Results
We were impressed by how significantly ANI Pharmaceuticals blew past analysts’ revenue, EPS, and EBITDA expectations this quarter. We were also glad it raised it full-year guidance across all three metrics. Zooming out, we think this was a solid "beat-and-raise" quarter. The stock traded up 4.2% to $74.69 immediately following the results.
Indeed, ANI Pharmaceuticals had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
