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Why Is Moderna (MRNA) Down 12.1% 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 lost about 12.1% in that time frame, underperforming the S&P 500.

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

Moderna Q2 Earnings and Revenues Surpass Estimates

Moderna incurred loss of 31 cents per share in the second quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 36 cents and the year-ago loss of 41 cents.

Revenues in the quarter were $66.4 million, which comfortably beat the Zacks Consensus Estimate of $31.52 million. In the year-ago quarter, revenues were $13.1 million.

Quarter in Details

Collaboration revenues were $28.4 million, up 183.6% year over year. Grant revenues were $37.9 million compared with $3.1 million in the year-ago quarter. While Collaboration revenues were boosted primarily by a payment from Moderna’s partner, AstraZeneca, Grant revenues were driven by its agreement with the Biomedical Advanced Research and Development Authority (“BARDA”) related to the development of mRNA-1273.

General and administrative expenses were up 28.6% to $36.6 million, primarily attributable to increased headcount and mRNA-1273 vaccine candidate development-related activities. Research & development expenses increased 18.4% to $151.9 million, largely due to increased headcount and costs related to mRNA-1273’s clinical development.

The company ended the quarter with $3.07 billion in cash and cash equivalents, compared with $1.7 billion as of Mar 31, 2020.

As of Jul 31, the company received approximately $400 million of customer deposits for potential supply of its coronavirus vaccine.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -11.44% due to these changes.

VGM Scores

At this time, Moderna has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Moderna has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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