Moderna Slashes FY21 Outlook As Q3 Results Miss Estimates

Moderna Inc. (MRNA) reported a profit for the third quarter compared to a loss in the previous year, reflecting surging revenues amid vaccine sales. Total revenue for the quarter surged from last year, resulting from commercial sales of the company’s COVID-19 vaccine in the U.S.

However, quarterly earnings per share and revenues missed analysts’ expectations. The company also slashed its 2021 product sales and COVID-19 vaccine delivery forecast.

The company slashed its fiscal 2021 product sales outlook to a range of $15.0 billion to $18.0 billion from the prior outlook of $20.0 billion, based on fewer doses for delivery in 2021, shifted to early 2022, and prioritization of deliveries to low-income countries through COVAX and African Union.

The Company expects deliveries of its COVID-19 vaccine in fiscal 2021 to be between 700 million and 800 million doses at the 100 µg dose level, down from the prior outlook of between 800 million and 1 billion doses.

For fiscal 2022, the company has already signed APAs for product sales of approximately $17 billion and options of up to $3 billion, for deliveries in 2022. It also expects commercial booster market sales could be up to $2 billion, Subject to receipt of a BLA or sBLA for boosters prior to the fall booster season.

Based on these revenue drivers, the Company believes 2022 sales could be in the range of $17 billion to $22 billion.

The Board of Directors has also authorized a share repurchase program of up to $1 billion over a two-year period to return excess capital to shareholders.

For the third quarter, the company reported net income of $3.33 billion or $7.70 per share, compared to a net loss of $233 million or $0.59 per share in the prior-year quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $9.05 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenue for the quarter soared to $4.97 billion from last year’s $157 million, resulting from commercial sales of the Company’s COVID-19 vaccine, and to a lesser extent, grant revenue. Analysts expected revenues of $6.21 billion for the quarter.

Product sales for the quarter were $4.8 billion from sales of the company’s COVID-19 vaccine. The increase in grant revenue of $286 million was primarily driven by an increase in revenue from BARDA related to the company’s COVID-19 vaccine development.

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