Shares of Moderna (MRNA) surged in pre-market trading after the company reported robust Q3 results. The biotech company swung to a profit in the third quarter, with earnings of $0.03 per share, compared to a loss of $9.53 in the same quarter last year. Analysts were expecting the company to report a loss of $1.94 per share.
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Moderna’s COVID Vaccine Generates Robust Sales
Furthermore, the company’s revenues increased by 5.5% year-over-year to $1.9 billion in the third quarter. This surpassed Street estimates of $1.25 billion. Additionally, the company’s Spikevax COVID vaccine generated robust sales of $1.8 billion in Q3, an increase of 3.5% year-over-year and surpassing analysts’ expectations of $1.38 billion. This success stemmed largely from a quicker U.S. launch of Spikevax compared to last year, with the U.S. Food and Drug Administration (FDA) approving Moderna’s updated COVID vaccine nearly three weeks earlier than in 2023.
In order to offset the slowing demand for its COVID vaccine, Moderna is focusing on new mRNA treatments, including the mRESVIA RSV vaccine and an experimental COVID-flu combination shot.
MRNA Announces Changes in Management
Furthermore, Moderna announced that CEO Stephane Bancel would step down from his additional role as Chief Commercial Officer, with President Stephen Hoge now overseeing sales, medical, and research functions. In addition, the company announced that its executives Jacqueline Miller and Rose Loughlin had been promoted to the positions of Chief Medical Officer and EVP for research, respectively.
MRNA Reiterates FY24 Sales Outlook
Looking ahead, the company expects to clock sales between $3 billion and $3.5 billion in FY24 while it narrowed its forecast for cost of sales as a percentage of product sales to be in the range of 40% to 45% from 40% to 50%.
What Is the Target Price for MRNA?
Analysts remain cautiously optimistic about MRNA stock, with a Moderate Buy consensus rating based on seven Buys, nine Holds, and two Sells. Over the past year, MRNA has declined by more than 25%, and the average MRNA price target of $97.62 implies an upside potential of 88.4% from current levels. These analyst ratings are likely to change following MRNA’s results today.
