Shares of Clarivate Plc (CLVT) plummeted over 7% in the pre-market trading session on Wednesday, following the company's release of weaker-than-expected fourth-quarter 2024 results and disappointing guidance for the full year 2025.
The company reported adjusted earnings of $0.21 per diluted share for Q4 2024, down from $0.23 a year earlier and slightly above analysts' estimates of $0.20. However, revenue for the quarter fell to $663 million from $683.7 million a year ago, missing analysts' expectations of $660.1 million.
Clarivate's outlook for 2025 further dampened investor sentiment, with the company projecting adjusted diluted earnings per share of $0.60 to $0.70 on revenue of $2.28 billion to $2.40 billion. This guidance fell short of analysts' forecasts of $0.71 per diluted share on revenue of $2.53 billion. Additionally, Clarivate announced that it has initiated the exploration of strategic alternatives, including potential divestitures.