Moderna Stock Plummets As Third-Quarter Covid Vaccine Sales Disappoint - Investor's Business Daily

Moderna (MRNA) slashed its outlook for Covid vaccine sales this year on Thursday — leading Moderna stock and shares of other vaccine makers to crash.

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For the year, Moderna now expects $15 billion to $20 billion in sales of its Covid vaccine. That's down from its prior estimate for $20 billion. Analysts projected adjusted profit of $29.93 per share and $20.27 billion in total revenue. The company now expects to deliver 700 million to 800 million doses of its vaccine this year, down from its previous view for 800 million to 1 billion.

Third-quarter sales and earnings also lagged projections. Moderna stock has taken a beating over recent weeks. U.S. officials delayed its vaccine in teens, while chief rivals Pfizer (PFE) and BioNTech (BNTX) are now allowed to vaccinate children as young as 5.

But Mikaela Franceschina, senior analyst with research firm Third Bridge, remained sunny on the company's chances. She noted Moderna gained authorization in India and Australia in the third quarter, and is now allowed to give booster shots in the U.S.

"Investors are watching what happens with their expansion to children, age 12-17, as the (Food and Drug Administration) has requested to see more side effect data — but the outlook is likely to be positive," she said in her post-earnings report.

However, in morning trading on the stock market today, Moderna stock plunged 13.3% near 300. According to MarketSmith.com, Moderna stock is trending below its 50-day moving average.

Moderna Stock Dives On Earnings

During the quarter, adjusted Moderna earnings were $7.70 per share on $4.97 billion in revenue. Its Covid vaccine brought in $4.81 billion. The balance came from grants and collaborations.

But both measures widely missed Moderna stock analysts' estimates. The Street expected earnings of $9.09 per share and $6.2 billion in sales.

On its slashed outlook for 2021, Moderna noted longer delivery times for international orders and exports that may shift deliveries to early 2022. The company said it's also working to expand its finish and fill capacity — a key step in assembling drugs.

Despite the lowered Covid expectations for 2021, Moderna was positive on its efforts in vaccines for cytomegalovirus, respiratory syncytial virus and influenza. The company is also working on a new Covid vaccine. The latter is being developed as a refrigerator-stable vaccine.

"Moderna has taken the plunge to further expand their efforts with its mRNA technology to develop better solutions for infectious and rare diseases," Third Bridge's Franceschina said. She noted the main value will come from vaccines, but the company can also move into gene editing.

Vaccine Stock Hit The Skids

Still, the diminished 2021 outlook hurt Moderna stock and shares of other vaccine makers.

Shares of BioNTech and Novavax (NVAX) plunged 6.9% and 6%, respectively. Pfizer stock also fell 1.7%, though the company recently boosted its outlook for 2021 Covid vaccine sales to $36 billion.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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