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Novavax (NVAX) Q4 Earnings & Sales Miss Estimates, Stock Tanks

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Novavax, Inc. (NVAX - Free Report) reported a fourth-quarter 2023 loss of $1.44 cents per share, much wider than the Zacks Consensus Estimate of a loss of 49 cents. In the year-ago quarter, the company reported a loss of $2.28 per share.

Revenues in the quarter amounted to $291.3 million, also missing the Zacks Consensus Estimate of $334.0 million. The top line declined 18.5% on a year-over-year basis.

Quarter in Detail

In the reported quarter, the company recorded $251.4 million in product sales, reflecting a decrease of 12.6% on a year-over-year basis. The reported product sales beat our model estimates of $246.5 million.

Grant revenues declined 45.4% year over year to $37.9 million for the same period.

Novavax recorded $1.9 million of revenues from royalties and adjuvant sales to licensing partners compared with the year-ago quarter’s revenues of $.04 million.

In the reported quarter, research and development (R&D) expenses were $165 million, down almost 36% year over year. The downside can be attributed to a reduction in clinical and manufacturing spending during the quarter.

Selling, general and administrative (SG&A) expenses were down 4.3% year over year to $155 million.

As of Dec 31, 2023, Novavax had $584 million of cash and cash equivalents compared with $666 million as of Sep 30, 2023. The company sold its common stock through at-the-market offerings, wherein it raised $110 million in net proceeds during the quarter.

Shares of Novavax were down 26.7% on Feb 28 following the announcement of the earnings result. The stock has plunged 36.9% in the past year compared with the industry’s decrease of 6.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Full-Year Results

In 2023, Novavax generated revenues of $983.7 million compared with $1.9 billion recorded in 2022.

In the same period, the company recorded a loss of $5.41 per share compared with a loss of $8.42 in 2022.

2024 Guidance

Novavax expects total revenues in the range of $800 million to $1 billion in 2024. The Zacks Consensus Estimate for the metric currently stands at $1.11 billion.

In the first quarter of 2024, total revenues are expected to be around $100 million.

Novavax’s shares were down as investors were not too impressed with the timid revenue outlook.

The company expects its full-year combined R&D and SG&A expenses in the band of $700-$800 million.

Pipeline Updates

In January 2024, Novavax announced that it has decided to reduce its global workforce by 12%. This includes a 9% reduction in its full-time employees, and the remainder is comprised of contractors and consultants.

Including this reduction, Novavax’s workforce has been reduced by approximately 30% compared with the end of the first quarter of 2023.

In November 2023, the World Health Organization granted emergency use listing to NVX-CoV2601, Novavax’s updated protein-based COVID vaccine, for use in individuals aged 12 years and older.

In October 2023, the FDA granted emergency use authorization (“EUA”) to NVX-CoV2601 in individuals aged 12 years and older. Following the EUA, Novavax’s updated vaccine is the only non-mRNA vaccine option available to people in the United States.

This apart, Novavax is planning to start a pivotal phase III study on its investigational COVID-19-influenza combination vaccine in the second half of 2024, with the intent to commercially market the same in 2026.

Novavax, Inc. Price, Consensus and EPS Surprise

Novavax, Inc. Price, Consensus and EPS Surprise

Novavax, Inc. price-consensus-eps-surprise-chart | Novavax, Inc. Quote

Zacks Rank & Stocks to Consider

Novavax currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector are Indivior PLC (INDV - Free Report) , Vanda Pharmaceuticals Inc. (VNDA - Free Report) and Puma Biotechnology, Inc. (PBYI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Indivior’s 2024 earnings per share have improved from $1.83 to $1.95. In the past year, shares of INDV have risen 12.6%.

Indivior’s earnings beat estimates in each of the trailing three quarters. INDV delivered an average earnings surprise of 48.06%.

In the past 60 days, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 30.4%.

Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.

In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 69 cents to 71 cents. In the past year, shares of PBYI have risen 71%.

Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.

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