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Why Is Moderna (MRNA) Up 6.8% Since Last Earnings Report?

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A month has gone by since the last earnings report for Moderna (MRNA - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Moderna due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Moderna Q4 Earnings Beat Estimates, Revenues Miss

Moderna incurred loss of 37 cents per share in the fourth quarter 2019 compared to loss of $1.14 per share in year-ago period. The Zacks Consensus Estimate was pegged at a loss of 43 cents per share.

Revenues in the quarter were $14.1 million, missing the Zacks Consensus Estimate of $17 million. In the year-ago quarter, revenues were $35.4 million.

Quarter in Details

Collaboration revenue were $10.6 million, down 67.8% year over year. Grant revenues were up 34.4% year over year to $3.5 million.

General and administrative expenses were down 32% to $25.6 million. Research & development expenses decreased 21.1% to $118.8 million due to a decline in licensing and material costs.

The company ended the quarter with $1.26 billion in cash and cash equivalents, compared with $1.34 billion as of Sep 30, 2019.

2020 Guidance Maintained

Moderna maintained its previous guidance for net cash used in operating activities in the range of $490 million - $510 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.23% due to these changes.

VGM Scores

At this time, Moderna has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Moderna has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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