Xeris Biopharma reported quarterly earnings per share (EPS) that broke even, matching the Zacks Consensus Estimate of $0.01. This is an improvement compared to a loss of $0.06 per share last year. However, it resulted in an earnings surprise of -100%, while the previous quarter had a positive surprise of +66.67%. For the quarter ending September 2025, Xeris Biopharma generated revenues of $74.38 million, slightly above the consensus estimate by 0.04%. This revenue increased from $54.27 million in the previous year. Since the beginning of the year, Xeris Biopharma shares have surged by about 191.2%, while the S&P 500 index only increased by 15.6%. Before this earnings report, the company’s earnings estimates were downgraded, resulting in a Zacks Rank #4 (Sell) for the stock. The current estimate for the next quarter’s EPS is $0.05, with revenues projected at $81.18 million. For the current fiscal year, the estimate is -$0.01 on revenues of $287.18 million. Another company in the same industry, Assertio, is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year change of -166.7%, alongside expected revenues of $26.9 million, which is down 7.9% from last year. The latest earnings report from Xeris Biopharma gives mixed signals. While there was a narrow miss on EPS, revenue topped expectations. The break-even outcome, versus a forecasted profit of one cent, has raised concerns after the stock’s significant 191% increase this year. Currently, implied volatility for XERS options is high, indicating that the market expects a big price movement soon. For those skeptical about the stock’s performance, this earnings miss might trigger a price correction. Historically, after a large gain, even a small disappointment can lead to profit-taking. Buying put options with strike prices 5-10% below the current market price could be a strategy to take advantage of a possible downturn, especially if management provides cautious guidance in the earnings call. Conversely, the impressive 37% year-over-year revenue growth presents a strong bullish argument. This growth suggests there is solid demand for the company’s products, which could outweigh the small earnings miss. Selling cash-secured puts might be an appealing way to earn premium from the heightened volatility, as strong sales could prevent a significant price drop. Given the uncertain outlook from the upcoming management commentary, a non-directional strategy might be advisable. A similar situation occurred with Assertio (ASRT) during its Q1 2025 report when the stock moved over 15% after the earnings call. Utilizing a long straddle—where both a call and a put option are purchased—could allow a trader to benefit from a large price swing in either direction after the call.

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