Pulse Biosciences stock plummeted 5.06% during intraday trading on Friday, marking a sharp reversal after the company reported quarterly results that beat analyst expectations.

The medical technology company reported an adjusted loss of 26 cents per share for the quarter ended December 31, better than the 31-cent loss analysts had expected. Revenue also exceeded forecasts at $264,000 compared to the $250,000 estimate. However, the company still reported a substantial quarterly loss of $17.43 million.

The stock had surged 82.7% during the quarter leading up to the earnings release, suggesting investors may be engaging in profit-taking despite the positive earnings surprise. While analysts maintain a "strong buy" rating with a median price target of $26, the market reaction indicates concerns about the company's continued losses even as it beats expectations.