Shares of Arcutis Biotherapeutics Inc. (ARQT) plummeted 6.75% in Tuesday's trading session following the release of its first-quarter financial results. The biopharmaceutical company's performance fell short of analysts' expectations in key areas, triggering a sell-off among investors.

The company reported a Q1 operating income of -$24.529 million, missing the IBES estimate of -$23.9 million. This underperformance was accompanied by substantial operating expenses of $90.375 million for the quarter, highlighting the ongoing costs associated with the company's research and development efforts.

Despite the disappointing operating income, there were some positive aspects in the report. Arcutis's Q1 basic earnings per share (EPS) came in at -$0.20, slightly better than the IBES estimate of -$0.21. Additionally, the company reported product revenue of $63.846 million, indicating some traction in its commercial operations.

However, the market's reaction suggests that investors were more concerned about the missed operating income target and high operating expenses, overshadowing the marginally better EPS figure. The significant drop in share price reflects growing worries about Arcutis's path to profitability and its ability to manage costs effectively in the competitive biopharmaceutical landscape.