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Moderna's (MRNA) Lags on Q3 Earnings, Lowers '22 Sales Outlook
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Moderna, Inc. (MRNA - Free Report) reported earnings of $2.53 per share for the third quarter of 2022, missing the Zacks Consensus Estimate of $3.04. Earnings declined 67% in the quarter. The year-over-year decline in the bottom line was due to lower revenues and higher operating expenses incurred during the third quarter.
Revenues in the quarter were $3.36 billion, which also beat the Zacks Consensus Estimate of $3.33 billion. Total revenues were down 32.3% year over year due to declining COVID-19 vaccine sales during the quarter.
Quarter in Detail
Product sales, entirely from the sale of COVID-19 vaccines, were down 35.1% year over year to $3.12 billion, driven by lower sales volume of COVID due to the timing of market authorizations for bivalent booster vaccines. Sequentially, the sales figures declined 31.1%.
Grant revenues were $144 million compared with $140 million in the year-ago quarter. Collaboration revenues were $100 million compared with $19 million in the year-ago quarter. The company earns collaboration revenues from agreements with several big pharma/biotech companies, including AstraZeneca, Merck (MRK - Free Report) and Vertex Pharmaceuticals.
Selling, general and administrative expenses were $278 million, up 65% year over year. The upside can be attributed to an increase in personnel-related expenses and increased spending in commercialization activities.
Research & development expenses were $820 million, up 57% from the year-ago period’s levels. The significant increase was primarily attributable to higher clinical costs and personnel-related expenses.
The company ended the quarter with $17.0 billion in cash and cash equivalents compared with $18.1 billion as of Jun 30, 2022.
Trims 2022 Guidance
Following the delay of certain deliveries of its bivalent COVID-19 vaccine doses due to short-term supply-related issues, Moderna cut its annual sales forecast for its COVID-19 vaccine. Management now expects revenue from advanced purchase agreements in the range of $18-$19 billion, down from the previous guidance of nearly $21 billion. The company deferred deliveries worth $2-$3 billion out to next year.
Following the opening bell on Nov 3, Moderna’s shares dived down 12% due to the cut in sales guidance for its COVID vaccine. In the year so far, shares of the company have declined 41.6% compared with the industry’s 22.3% decline.
Image Source: Zacks Investment Research
The company maintained combined R&D and SG&A expenses to be approximately $4 billion in 2022. It expects capital expenditure to be around $500 million, down from the previous range of $600-$800 million.
Coronavirus Vaccine Update
This August, the FDA authorized mRNA-1273.222, a BA.4/BA.5 Omicron-targeting bivalent COVID vaccine for use as a single booster dose in individuals aged six years and older. This booster vaccine has been developed specifically to cater to the U.S. market. A deal worth $1.7 billion has been inked with the U.S. government for this new vaccine. A regulatory filing is also pending in the European Union seeking authorization for mRNA-1273.222 in individuals aged 12 years and older.
During the third quarter, Moderna also gained authorizations in Europe, Australia and Japan for using mRNA-1273.214, a bivalent COVID vaccine designed to target the BA.1 Omicron subvariant.
Other Key Pipeline Updates
Moderna has several other mRNA-based pipeline candidates targeting different indications in its pipeline. The leading candidates among them are mRNA-1010 (seasonal flu vaccine), mRNA-1345 (respiratory syncytial virus vaccine) and mRNA-1647 (cytomegalovirus vaccine), which are in pivotal late-stage studies. Data from the influenza vaccine is expected in first-quarter 2023.
Last month, Moderna announced that partner Merck exercised an option under an existing collaboration agreement. Per the agreement, the companies will jointly develop and commercialize Moderna’s PCV candidate, mRNA-4157/V940. In consideration for exercising the option, Merck will pay $250 million to Moderna. This payment by Merck was received in fourth-quarter 2022.
mRNA-4157 is currently being evaluated in a mid-stage study by Moderna in combination with Merck’s blockbuster cancer drug Keytruda as an adjuvant treatment for patients with high-risk melanoma. Data from this study is expected by this year’s end.
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 66.6% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 7.3% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.61 to $6.94 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.74 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, GILD delivered an earnings surprise of 31.94%.
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Moderna's (MRNA) Lags on Q3 Earnings, Lowers '22 Sales Outlook
Moderna, Inc. (MRNA - Free Report) reported earnings of $2.53 per share for the third quarter of 2022, missing the Zacks Consensus Estimate of $3.04. Earnings declined 67% in the quarter. The year-over-year decline in the bottom line was due to lower revenues and higher operating expenses incurred during the third quarter.
Revenues in the quarter were $3.36 billion, which also beat the Zacks Consensus Estimate of $3.33 billion. Total revenues were down 32.3% year over year due to declining COVID-19 vaccine sales during the quarter.
Quarter in Detail
Product sales, entirely from the sale of COVID-19 vaccines, were down 35.1% year over year to $3.12 billion, driven by lower sales volume of COVID due to the timing of market authorizations for bivalent booster vaccines. Sequentially, the sales figures declined 31.1%.
Grant revenues were $144 million compared with $140 million in the year-ago quarter. Collaboration revenues were $100 million compared with $19 million in the year-ago quarter. The company earns collaboration revenues from agreements with several big pharma/biotech companies, including AstraZeneca, Merck (MRK - Free Report) and Vertex Pharmaceuticals.
Selling, general and administrative expenses were $278 million, up 65% year over year. The upside can be attributed to an increase in personnel-related expenses and increased spending in commercialization activities.
Research & development expenses were $820 million, up 57% from the year-ago period’s levels. The significant increase was primarily attributable to higher clinical costs and personnel-related expenses.
The company ended the quarter with $17.0 billion in cash and cash equivalents compared with $18.1 billion as of Jun 30, 2022.
Trims 2022 Guidance
Following the delay of certain deliveries of its bivalent COVID-19 vaccine doses due to short-term supply-related issues, Moderna cut its annual sales forecast for its COVID-19 vaccine. Management now expects revenue from advanced purchase agreements in the range of $18-$19 billion, down from the previous guidance of nearly $21 billion. The company deferred deliveries worth $2-$3 billion out to next year.
Following the opening bell on Nov 3, Moderna’s shares dived down 12% due to the cut in sales guidance for its COVID vaccine. In the year so far, shares of the company have declined 41.6% compared with the industry’s 22.3% decline.
Image Source: Zacks Investment Research
The company maintained combined R&D and SG&A expenses to be approximately $4 billion in 2022. It expects capital expenditure to be around $500 million, down from the previous range of $600-$800 million.
Coronavirus Vaccine Update
This August, the FDA authorized mRNA-1273.222, a BA.4/BA.5 Omicron-targeting bivalent COVID vaccine for use as a single booster dose in individuals aged six years and older. This booster vaccine has been developed specifically to cater to the U.S. market. A deal worth $1.7 billion has been inked with the U.S. government for this new vaccine. A regulatory filing is also pending in the European Union seeking authorization for mRNA-1273.222 in individuals aged 12 years and older.
During the third quarter, Moderna also gained authorizations in Europe, Australia and Japan for using mRNA-1273.214, a bivalent COVID vaccine designed to target the BA.1 Omicron subvariant.
Other Key Pipeline Updates
Moderna has several other mRNA-based pipeline candidates targeting different indications in its pipeline. The leading candidates among them are mRNA-1010 (seasonal flu vaccine), mRNA-1345 (respiratory syncytial virus vaccine) and mRNA-1647 (cytomegalovirus vaccine), which are in pivotal late-stage studies. Data from the influenza vaccine is expected in first-quarter 2023.
Last month, Moderna announced that partner Merck exercised an option under an existing collaboration agreement. Per the agreement, the companies will jointly develop and commercialize Moderna’s PCV candidate, mRNA-4157/V940. In consideration for exercising the option, Merck will pay $250 million to Moderna. This payment by Merck was received in fourth-quarter 2022.
mRNA-4157 is currently being evaluated in a mid-stage study by Moderna in combination with Merck’s blockbuster cancer drug Keytruda as an adjuvant treatment for patients with high-risk melanoma. Data from this study is expected by this year’s end.
Moderna, Inc. Price
Moderna, Inc. price | Moderna, Inc. Quote
Zacks Rank & Stocks to Consider
Moderna currently has a Zacks Rank #3 (Hold).
Some other top-ranked stocks in the overall healthcare sector include Angion Biomedica and Gilead Sciences (GILD - Free Report) , each of which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 66.6% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 7.3% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.61 to $6.94 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.74 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, GILD delivered an earnings surprise of 31.94%.