Arcutis Biotherapeutics Inc. (ARQT) saw its stock price plummet 8.38% in after-hours trading on Tuesday, following the release of its first-quarter financial results. The biopharmaceutical company's performance raised concerns among investors, particularly due to its operating loss exceeding analyst expectations and high operating expenses.

The company reported a Q1 operating loss of $24.529 million, which was worse than the IBES estimate of $23.9 million. This larger-than-expected loss likely contributed to the negative market reaction. Additionally, Arcutis disclosed substantial operating expenses of $90.375 million for the quarter, highlighting the significant costs associated with its operations and research activities.

Despite the stock's sharp decline, there were some positive aspects in the earnings report. Arcutis reported a basic earnings per share (EPS) of -$0.20, slightly better than the IBES estimate of -$0.21. Furthermore, the company announced product revenue of $63.846 million for the quarter, indicating some traction in its commercial operations. However, these positive elements were not enough to offset investor concerns about the company's overall financial performance and path to profitability, resulting in the substantial after-hours stock price drop.