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Why Is Novavax (NVAX) Down 5.9% Since Last Earnings Report?

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It has been about a month since the last earnings report for Novavax (NVAX - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Novavax 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.

Novavax's Q4 Loss Wider Than Expected, 2022 View Weak

Novavax incurred a loss of $11.18 per share for fourth-quarter 2021, wider than the year-ago loss of $2.70 and the Zacks Consensus Estimate of a loss of $1.43.

The increase in year-over-year loss was on account of higher expenses incurred for the development and manufacturing of NVX-CoV2373 in advance, anticipating regulatory authorizations for the same.

Revenues for the quarter were $222 million, down 20.5% year over year. Revenues also missed the Zacks Consensus Estimate of $385.6 million.

Quarter in Detail

For the fourth quarter, royalties and other revenues rose more than 500% to $127.2 million. This was on account of the sale of NVX-CoV2373 in Indonesia and South Korea by Novavax’s partners. The company’s grant revenues significantly declined 63.4% year over year to $95 million for the same period.

For the reported quarter, research and development expenses were $963 million, up 140% year over year.

General and administrative expenses rose 37.4% year over year to $84 million.

As of Dec 31, 2021, Novavax had $1.5 billion of cash and cash equivalents compared with $1.9 billion as of Sep 30, 2021.

Full-Year Results

For 2021, Novavax generated revenues of $1.1 billion, reflecting a significant year-over-year surge from the year-ago figure of $476 million.

For the same period, the company incurred a loss of $23.44 per share in comparison with the year-ago loss of $7.27.

2022 Guidance

Novavax expects total revenues for the full year between $4 billion and $5 billion.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -39.07% due to these changes.

VGM Scores

At this time, Novavax has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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 this revision indicates a downward shift. It's no surprise Novavax has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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