Why Lannett Stock Is Plunging After Q4 Earnings Report?

Lannett Company Inc LCI reported Q4 FY21 sales of $106 million, missing the consensus of $110.63 million.
Sales decreased 23.1% Y/Y as Lannett's several key products faced a highly competitive pricing environment.
For FY21, sales of $478.8 million missed the company's expectation of $480 million - $500 million.
Adjusted gross margin for Q4 compressed to 25% from 35% a year ago.
Adjusted operating income declined to $4.9 million compared with $26.7 million last year.
Lannett posted a wider than expected net loss of $(0.19) than an estimated loss of $(0.12).
Guidance: For FY22, Lannett sees sales of $400 million - $440 million, well below the Wall Street estimate of $472.06 million.
It expects an adjusted gross margin of approximately 23% to 25% and an adjusted EBITDA of $40 million - $55 million.
Related Content: Lannett Inks US Commercialization Pact For Spiriva Handihaler.
Price Action: LCI shares are down 8.58% at $3.73 during the premarket session on the last check Thursday.