Moderna Inc. (MRNA) has reported strong first-quarter 2022 results, which beat both revenue and earnings expectations. Following the news, shares of the company rose 5.8% on Wednesday. The stock, however, slipped 1.7% at the time of writing.
The clinical-stage biotechnology company develops therapeutics and vaccines based on messenger ribonucleic acid (mRNA) for the treatment of infectious diseases, immuno-oncology, rare diseases, and cardiovascular diseases.
Results in Detail
Earnings of $8.58 per share surpassed analysts’ estimates of $5.21 per share. The company reported earnings of $2.84 per share in the same quarter last year.
Quarterly revenues of $6.1 billion grew from $1.9 billion a year ago on the back of a significant rise in product sales, outpacing estimates of $4.6 billion.
Research and development expenses rose 38.2% year-over-year to $554 million. Selling, general and administrative expenses were $268 million for the first quarter, up from $77 million a year ago.
The CEO of Moderna, Stephane Bancel, said, “Beginning in the fall of 2022, our robust Phase 3 pipeline could lead to three respiratory commercial launches over the next two to three years. We also look forward to advancing our therapeutic programs and sharing proof-of-concept readouts on our rare genetic disease programs for propionic acidemia and methylmalonic acidemia, and on our personalized cancer vaccine program this year.”
FY22 Outlook
Looking ahead, the company said that it has signed $21 billion worth of Advanced Purchase Agreements (APAs) for 2022. The company is of the opinion that COVID market dynamics will result in sales being slightly larger in the second half of 2022 versus the first half.
Cost of sales as a percentage of product sales is expected to be in the low-to-mid 20s percentage range. The expenses for the year are expected to be nearly $4 billion.
Analyst’s View
Following the results, Morgan Stanley analyst Matthew Harrison reiterated a Hold rating on the stock and lowered the price target to $199 from $217. The new price target implies 28.4% upside potential to current levels.
Overall, MRNA has a Moderate Buy consensus rating based on six Buys, five Holds, and one Sell. Moderna’s average price target of $269.56 implies 73.9% upside potential to current levels.
Investors’ Stance
TipRanks’ Stock Investors tool shows that investors have a Very Positive stance on Moderna, as 1% of investors on TipRanks increased their exposure to MRNA stock over the past 30 days.
Takeaway
Demand for Moderna’s COVID-19 vaccine continues to remain strong, thus supporting its topline growth. Further, factors like strong quarterly performance, bullishness of investors and the company’s efforts to introduce new drugs are likely to keep investors interested in the stock.
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