Radiopharmaceutical company Lantheus Holdings (NASDAQ: LNTH) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $372.8 million. The company’s full-year revenue guidance of $1.57 billion at the midpoint came in 1.5% below analysts’ estimates. Its non-GAAP profit of $1.53 per share was 7.5% below analysts’ consensus estimates.
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Lantheus (LNTH) Q1 CY2025 Highlights:
- Revenue: $372.8 million vs analyst estimates of $378.8 million (flat year on year, 1.6% miss)
- Adjusted EPS: $1.53 vs analyst expectations of $1.65 (7.5% miss)
- The company dropped its revenue guidance for the full year to $1.57 billion at the midpoint from $1.58 billion, a 0.6% decrease
- Management lowered its full-year Adjusted EPS guidance to $6.65 at the midpoint, a 6.3% decrease
- Operating Margin: 27.4%, down from 28.8% in the same quarter last year
- Free Cash Flow Margin: 26.5%, down from 32.2% in the same quarter last year
- Market Capitalization: $7.19 billion
"We are laying the foundation for the next chapter of Lantheus’ business with the acquisition of Evergreen Theragnostics and planned acquisition of Life Molecular Imaging, both of which add growth drivers that complement our business and diversify our revenues. These transactions also add exciting new pipeline programs in both late- and early-stage development and key capabilities that enable Lantheus to progress novel programs from bench to clinic," said Brian Markison, Chief Executive Officer at Lantheus.
Company Overview
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Lantheus grew its sales at an incredible 34.3% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Lantheus’s annualized revenue growth of 22.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, Lantheus’s $372.8 million of revenue was flat year on year, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 7% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and implies the market is baking in some success for its newer products and services.
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Operating Margin
Lantheus has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average operating margin of 18.4%.
Analyzing the trend in its profitability, Lantheus’s operating margin rose by 28.2 percentage points over the last five years, as its sales growth gave it immense operating leverage. This performance was mostly driven by its recent improvements as the company’s margin has increased by 32.6 percentage points on a two-year basis. These data points are very encouraging and shows momentum is on its side.
This quarter, Lantheus generated an operating profit margin of 27.4%, down 1.4 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.
Lantheus’s EPS grew at an astounding 39.7% compounded annual growth rate over the last five years, higher than its 34.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Lantheus’s earnings to better understand the drivers of its performance. As we mentioned earlier, Lantheus’s operating margin declined this quarter but expanded by 28.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q1, Lantheus reported EPS at $1.53, down from $1.69 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Lantheus’s full-year EPS of $6.62 to grow 8.6%.
Key Takeaways from Lantheus’s Q1 Results
We struggled to find many positives in these results. Its full-year EPS guidance missed significantly and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 8.3% to $96.07 immediately following the results.
Lantheus underperformed this quarter, but does that create an opportunity to invest right now? 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.
