Earnings Results: Moderna stock falls after earnings miss by a wide margin and company cuts sales outlook by up to $3 billion

by | Nov 3, 2022 | Stock Market

Moderna Inc. shares moved lower Thursday, after the COVID vaccine maker posted far weaker-than-expected third-quarter earnings and lowered full-year sales guidance by up to $3 billion. The stock was last down 2%, although that was well off pre-market losses that reached as much as 14%.

The Cambridge, Mass.-based biotech
MRNA,
-0.22%
posted net income of $1.043 billion, or $2.53 a share, for the quarter, down from $3.333 billion, or $7.70 a share, in the year-earlier period. Revenue fell to $3.364 billion from $4.969 billion a year ago. Both numbers were below the FactSet consensus, which called for EPS of $3.30 and revenue of $3.527 billion. Moderna said its third-quarter revenue was hurt by a decline in sales of the COVID vaccine, as well as lower sales volume due to the timing of market authorizations for its bivalent COVID booster and the related manufacturing time ramp-up. The Food and Drug Administration authorized the company‚Äôs bivalent booster in August and demand shifted toward that shot, which targets newer omicron variants, as well as the original virus. But take-up of the booster has proved slow and supply was crimped by a manufacturing snafu. The company switched to five-dose vials from 10-dose vials requiring different packaging. Cost of sales came to $1.1 billion, or 35% of product sales, including a $333 million charge for inventory write-downs relating to COVID products that exceeded their shelf life prior to being used. The comp …

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