ANI Pharmaceuticals (ANIP) shares plummeted 5.14% in Friday's trading session, despite the company reporting better-than-expected first-quarter earnings and raising its full-year guidance. This unexpected stock movement has left investors puzzled, given the seemingly positive news.

The pharmaceutical company reported adjusted earnings of $1.70 per share for Q1, significantly beating the analyst consensus of $1.38. Revenue also surpassed expectations, coming in at $197.12 million, a 43.4% increase from the previous year and well above the estimated $180.68 million. Furthermore, ANI Pharmaceuticals raised its 2025 guidance, now expecting net revenues between $768-$793 million and adjusted EBITDA of $195-205 million.

The stark contrast between the company's strong performance and the stock's negative reaction suggests that investors may be focusing on other factors not immediately apparent in the earnings report. Possible concerns could include sustainability of growth, competitive pressures, or broader market trends affecting the pharmaceutical sector. As the trading day progresses, market analysts will likely provide more insights into the factors driving this unexpected stock movement.