Market News

Moderna Swings to Profit in Q2 as Revenues Skyrocket

Massachusetts-based biotechnology firm Moderna (MRNA) has reported outstanding financial results for the second quarter of 2021. The company makes messenger ribonucleic acid (mRNA)-based vaccines and therapeutics to treat cardiovascular diseases, rare diseases, immuno-oncology and infectious diseases.

Moderna reported earnings per share (EPS) of $6.46, beating the Street’s estimate of $6.04. The company had recorded a loss of $0.31 per share in the second quarter of 2020. (See Moderna stock chart on TipRanks)

Total revenue amounted to $4.35 billion, exceeding analysts’ expectations of $4.28 billion. It was significantly higher than $67 million reported in the year-ago quarter. The increase was primarily driven by commercial sales of COVID-19 vaccine.

The CEO of Moderna, Stéphane Bancel, said, “I am proud of the progress our teams at Moderna have made in the past quarter in advancing our development pipeline while addressing a global pandemic and quickly establishing global manufacturing and commercial organizations.”

Last month, Goldman Sachs analyst Salveen Richter maintained a Buy rating on the stock and raised the price target to $299 from $228 (28.2% downside potential).

The analyst said, “In 2H21, apart from updates on COVID-19 boosters, we look to data from the ex-infectious disease verticals (notably in rare disease, oncology and regenerative therapeutics/heart disease – with management noting enthusiasm on the latter per animal models). First Ph1/2 data from the seasonal flu vaccine is expected in late-2021/early-2022. Given COVID-19 related cash generation, we anticipate continued R&D investment across the core modalities (prophylactic vaccines and systemic secreted and cell surface therapeutics) and beyond.”

Overall, the stock has a Moderate Buy consensus based on 7 Buys, 3 Holds and 2 Sells. The average Moderna price target of $222.6 implies 46.5% downside potential. Shares of the company have gained 464.3% over the past year.

According to TipRanks’ Smart Score rating system, Moderna scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.

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