Moderna stock tumbles after quarterly earnings show revenue declines
The vaccine maker's stock fell by 4% in early morning trading
Moderna Chief Medical Officer Dr. Paul Burton acknowledges while governments are trying to protect health care systems, COVID restrictions over omicron are making people anxious.
Shares of Moderna Inc. fell after the company lowered its sales guidance for 2022 and missed revenue expectations for the third quarter.
Previously, the COVID-19 vaccine maker estimated end-of-year revenue would land at $21 billion. But, on Thursday, it changed those expectations to between $18 and $19 billion.
The company cited supply chain issues that have delayed its vaccine distribution for the revenue decline.
Syringes sit in front of a Moderna logo in this illustration from Nov. 27, 2021. (REUTERS/Dado Ruvic/Illustration/File Photo / Reuters)
Overall third-quarter net income for Moderna stands at $1.043 billion, down from $3.333 billion, or $7.70 a share, from the prior year. Revenue also fell from $4.9 billion to $3.3 billion by the end of September.
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Moderna's stock declined by 4% in early morning trading.
Moderna's shares declined in early morning trading Thursday after the company released poor third-quarter earnings. (REUTERS/Mike Segar/File Photo / Reuters)
"Today's earnings continue to show strong corporate momentum," Stéphane Bancel, Moderna's CEO, said in a statement to investors. "With $13.6 billion in product sales through the first three quarters of the year, and advance purchase agreements for anticipated delivery this year now expected to produce around $18 to $19 billion of product sales, we continue to have a strong financial position as we prepare for multiple upcoming global product launches."
The company's share so far this year has fallen by 42% as its cash positions stand at $17 billion, a decline from $18.1 billion the previous quarter.
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Despite the recent revenue decline, Moderna expects demand for its COVID-19 vaccine to bring in income similar to annual revenue for the flu vaccine.