We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Moderna (MRNA) Q2 Earnings Beat, Stock Down on Guidance Slash
Read MoreHide Full Article
Moderna, Inc. (MRNA - Free Report) reported a loss of $3.33 per share in second-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of $3.47. In the year-ago period, management posted a loss of $3.62.
Revenues in the quarter were $241 million, beating the Zacks Consensus Estimate of $124.9 million. Total revenues declined 30% year over year due to reduced COVID-19 vaccine sales during the quarter.
Quarter in Detail
Product sales, entirely from the sale of COVID-19 vaccines, were down 37% year over year to $184 million due to lower sales volume compared with the year-ago period’s levels. Per management, the decline was in alignment with the company’s anticipated transition to a seasonal COVID-19 vaccine market.
Management also generated $57 million from grant, collaboration and licensing and royalty revenues during the quarter compared with $51 million in the year-ago period. The companyusually earns collaboration revenues from agreements with several big pharma/biotech companies, including Merck (MRK - Free Report) and Vertex Pharmaceuticals.
Selling, general and administrative expenses were $268 million, down 19% year over year. This downside is a result of Moderna’s cost discipline and efficiencies resulting from investments toward its foundational capabilities over the last year, resulting in a significant reduction of purchased services and the use of external consultants.
Research & development expenses were $1.2 billion, up 6% from the year-ago period’s levels. The uptick was primarily owing to higher personnel costs and increased headcount to support the company’s ongoing pipeline development.
2024 Guidance
MRNA downgraded its product revenue guidance for 2024. It now expects to generate product sales in the range of $3.0-$3.5 billion compared with the previous guidance of $4 billion.
Per management, this downward revision is driven by three primary factors — very low EU sales this year, potential revenue deferrals for certain international sales into the next year, and an increasingly competitive environment for respiratory vaccines in the United States. This was the primary reason that the company’s shares fell nearly 17% in pre-market trading on Aug 1, despite the earnings and sales beat.
Year to date, the stock has risen 19.8% against the industry’s 0.6% fall.
Image Source: Zacks Investment Research
During the second half of the year, management expects a sales split of 40-50% in third-quarter 2024 with the balance in the fourth quarter.
Moderna reiterated the rest of its financial guidance. Management expects full-year R&D expenses of around $4.5 billion and SG&A expenses of approximately $1.3 billion. It expects capital expenditures to be around $0.9 billion and end 2024 with a cash balance of around $9 billion.
Recent Updates
Earlier this May, the FDA approved Moderna’s mRNA-based RSV vaccine for use in adults aged 60 years and older. This vaccine, which will be marketed under the name mResvia, will be commercially launched during the upcoming vaccination season. As of last month, deliveries of the vaccine doses are underway.
The company has more than 40 mRNA-based investigational candidates in different stages of clinical studies, targeting various indications, including cancer. Moderna is evaluating multiple candidates in late-stage studies — mRNA-1647 [cytomegalovirus (CMV) vaccine], mRNA-1010 (influenza vaccine), mRNA-4157/V940 [individualized neoantigen therapy (INT)] and mRNA-1083 (COVID-19 plus influenza combination vaccine). Data readouts on mRNA-1083 and mRNA-1647 are expected before 2024-end.
Last year, MRNA reported encouraging data from a phase III immunogenicity study (P303) and a separate phase I/II head-to-head study evaluating an enhanced formulation of flu vaccine mRNA-1010. Participants treated with mRNA-1010 elicited higher immune responses across all four A and B strains of influenza compared to the vaccines marketed by GSK and Sanofi. Management is in ongoing discussions with regulators and intends to start seeking regulatory approvals later this year.
Moderna is co-developing mRNA-4157 with Merck. Moderna/Merck are evaluating mRNA-4157 in two pivotal phase III studies for melanoma and non-small cell lung cancer (NSCLC) indications. Since the onset of this year, Moderna/Merck initiated three new clinical studies evaluating mRNA-4157 across cutaneous squamous cell carcinoma (CSCC), renal cell carcinoma and muscle-invasive bladder cancer indications.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have risen 9.2%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, the Zacks Consensus Estimate for Halozyme Therapeutics’ earnings has risen from $3.69 per share to $3.90. For 2025, earnings estimates have increased from $4.50 to $4.81 in the past 60 days. Year to date, shares of HALO have surged 49.5%.
Earnings of Halozyme beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 9.40%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Moderna (MRNA) Q2 Earnings Beat, Stock Down on Guidance Slash
Moderna, Inc. (MRNA - Free Report) reported a loss of $3.33 per share in second-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of $3.47. In the year-ago period, management posted a loss of $3.62.
Revenues in the quarter were $241 million, beating the Zacks Consensus Estimate of $124.9 million. Total revenues declined 30% year over year due to reduced COVID-19 vaccine sales during the quarter.
Quarter in Detail
Product sales, entirely from the sale of COVID-19 vaccines, were down 37% year over year to $184 million due to lower sales volume compared with the year-ago period’s levels. Per management, the decline was in alignment with the company’s anticipated transition to a seasonal COVID-19 vaccine market.
Management also generated $57 million from grant, collaboration and licensing and royalty revenues during the quarter compared with $51 million in the year-ago period. The companyusually earns collaboration revenues from agreements with several big pharma/biotech companies, including Merck (MRK - Free Report) and Vertex Pharmaceuticals.
Selling, general and administrative expenses were $268 million, down 19% year over year. This downside is a result of Moderna’s cost discipline and efficiencies resulting from investments toward its foundational capabilities over the last year, resulting in a significant reduction of purchased services and the use of external consultants.
Research & development expenses were $1.2 billion, up 6% from the year-ago period’s levels. The uptick was primarily owing to higher personnel costs and increased headcount to support the company’s ongoing pipeline development.
2024 Guidance
MRNA downgraded its product revenue guidance for 2024. It now expects to generate product sales in the range of $3.0-$3.5 billion compared with the previous guidance of $4 billion.
Per management, this downward revision is driven by three primary factors — very low EU sales this year, potential revenue deferrals for certain international sales into the next year, and an increasingly competitive environment for respiratory vaccines in the United States. This was the primary reason that the company’s shares fell nearly 17% in pre-market trading on Aug 1, despite the earnings and sales beat.
Year to date, the stock has risen 19.8% against the industry’s 0.6% fall.
During the second half of the year, management expects a sales split of 40-50% in third-quarter 2024 with the balance in the fourth quarter.
Moderna reiterated the rest of its financial guidance. Management expects full-year R&D expenses of around $4.5 billion and SG&A expenses of approximately $1.3 billion. It expects capital expenditures to be around $0.9 billion and end 2024 with a cash balance of around $9 billion.
Recent Updates
Earlier this May, the FDA approved Moderna’s mRNA-based RSV vaccine for use in adults aged 60 years and older. This vaccine, which will be marketed under the name mResvia, will be commercially launched during the upcoming vaccination season. As of last month, deliveries of the vaccine doses are underway.
The company has more than 40 mRNA-based investigational candidates in different stages of clinical studies, targeting various indications, including cancer. Moderna is evaluating multiple candidates in late-stage studies — mRNA-1647 [cytomegalovirus (CMV) vaccine], mRNA-1010 (influenza vaccine), mRNA-4157/V940 [individualized neoantigen therapy (INT)] and mRNA-1083 (COVID-19 plus influenza combination vaccine). Data readouts on mRNA-1083 and mRNA-1647 are expected before 2024-end.
Last year, MRNA reported encouraging data from a phase III immunogenicity study (P303) and a separate phase I/II head-to-head study evaluating an enhanced formulation of flu vaccine mRNA-1010. Participants treated with mRNA-1010 elicited higher immune responses across all four A and B strains of influenza compared to the vaccines marketed by GSK and Sanofi. Management is in ongoing discussions with regulators and intends to start seeking regulatory approvals later this year.
Moderna is co-developing mRNA-4157 with Merck. Moderna/Merck are evaluating mRNA-4157 in two pivotal phase III studies for melanoma and non-small cell lung cancer (NSCLC) indications. Since the onset of this year, Moderna/Merck initiated three new clinical studies evaluating mRNA-4157 across cutaneous squamous cell carcinoma (CSCC), renal cell carcinoma and muscle-invasive bladder cancer indications.
Moderna, Inc. Price
Moderna, Inc. price | Moderna, Inc. Quote
Zacks Rank & Other Key Picks
Moderna currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the overall healthcare sector include Entrada Therapeutics (TRDA - Free Report) and Halozyme Therapeutics (HALO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have risen 9.2%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, the Zacks Consensus Estimate for Halozyme Therapeutics’ earnings has risen from $3.69 per share to $3.90. For 2025, earnings estimates have increased from $4.50 to $4.81 in the past 60 days. Year to date, shares of HALO have surged 49.5%.
Earnings of Halozyme beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 9.40%.