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Moderna (MRNA) to Report Q1 Earnings: What's in the Cards?
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Moderna, Inc. (MRNA - Free Report) is scheduled to report first-quarter 2019 results on May 7, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 13.95%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same once with the average positive surprise being 4.00%.
Moderna’s share price has surged 145.1% so far this year against the industry’s decrease of 0.6%.
Let’s see how things have shaped up for this announcement.
Factors to Note
Moderna does not have any marketed products in its portfolio. It derives revenues from its collaboration partners using its messenger RNA (mRNA) technology for development of therapies targeting different indications. These revenues depend on achievement of certain clinical development milestones by partnered pipeline candidates and can vary every quarter. In the all four quarters of 2019, revenues declined year over year due to lower collaboration revenues across its strategic alliances, particularly with AstraZeneca (AZN - Free Report) and Merck (MRK - Free Report) . We do not expect first-quarter results to reflect any improvement.
However, Moderna earned a grant from the Coalition for Epidemic Preparedness Innovations (CEPI) in January, under a collaboration to develop mRNA-based coronavirus vaccine. The company had up to $183 million in additional funding available from grants, as of February end. We note that the company has been progressing well with coronavirus vaccine development. These clinical and regulatory developments are likely to have increased operating expenses. Notably, it filed an investigation new drug application with the FDA in April to initiate a phase II study.
Meanwhile, Moderna has 21 mRNA investigational candidates in its pipeline with 13 candidates in clinical development stage. With several ongoing pre-clinical and clinical studies, we expect operating expense to have increased in the soon-to-be-reported quarter. However, the company has been focusing more on development of coronavirus vaccine and paused new enrollment of its phase I rare disease clinical studies, which must have partially offset the increase in operating expenses due to COVID-19 program and other ongoing clinical studies.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Moderna this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Moderna has an Earnings ESP of 0.00% because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 37 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Moderna currently has a Zacks Rank #1.
Here is a pharma stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.
Allogene Therapeutics, Inc.(ALLO - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #2. The company is scheduled to release first-quarter results on May 6.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Moderna (MRNA) to Report Q1 Earnings: What's in the Cards?
Moderna, Inc. (MRNA - Free Report) is scheduled to report first-quarter 2019 results on May 7, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 13.95%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same once with the average positive surprise being 4.00%.
Moderna’s share price has surged 145.1% so far this year against the industry’s decrease of 0.6%.
Let’s see how things have shaped up for this announcement.
Factors to Note
Moderna does not have any marketed products in its portfolio. It derives revenues from its collaboration partners using its messenger RNA (mRNA) technology for development of therapies targeting different indications. These revenues depend on achievement of certain clinical development milestones by partnered pipeline candidates and can vary every quarter. In the all four quarters of 2019, revenues declined year over year due to lower collaboration revenues across its strategic alliances, particularly with AstraZeneca (AZN - Free Report) and Merck (MRK - Free Report) . We do not expect first-quarter results to reflect any improvement.
However, Moderna earned a grant from the Coalition for Epidemic Preparedness Innovations (CEPI) in January, under a collaboration to develop mRNA-based coronavirus vaccine. The company had up to $183 million in additional funding available from grants, as of February end. We note that the company has been progressing well with coronavirus vaccine development. These clinical and regulatory developments are likely to have increased operating expenses. Notably, it filed an investigation new drug application with the FDA in April to initiate a phase II study.
Meanwhile, Moderna has 21 mRNA investigational candidates in its pipeline with 13 candidates in clinical development stage. With several ongoing pre-clinical and clinical studies, we expect operating expense to have increased in the soon-to-be-reported quarter. However, the company has been focusing more on development of coronavirus vaccine and paused new enrollment of its phase I rare disease clinical studies, which must have partially offset the increase in operating expenses due to COVID-19 program and other ongoing clinical studies.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Moderna this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Moderna has an Earnings ESP of 0.00% because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 37 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Moderna currently has a Zacks Rank #1.
Moderna, Inc. Price and Consensus
Moderna, Inc. price-consensus-chart | Moderna, Inc. Quote
A Stock That Warrants a Look
Here is a pharma stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release.
Allogene Therapeutics, Inc.(ALLO - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #2. The company is scheduled to release first-quarter results on May 6.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>