Moderna (MRNA) to Release Q3 Earnings: What to Watch For
The biotechnology giant, Moderna, is gearing up to unveil its third-quarter earnings results before the market opens on Thursday, November 7. Investors and analysts alike will be closely scrutinizing the report for insights into the company’s performance and future prospects.
Analysts Expect a Loss, Focus on Revenue and Outlook
Wall Street analysts predict Moderna to report a quarterly loss of $1.9 per share, a stark contrast to the $9.53 per share loss recorded in the same period last year. While the focus might be on the bottom line, investors will be keen to see how Moderna’s revenue for the quarter measures up to the $1.25 billion projection. This figure pales in comparison to the $1.83 billion revenue generated a year prior.
Recent Developments and Analyst Sentiment
In recent weeks, Moderna has been making headlines with its collaboration with Merck & Co. Inc. (MRK). The two pharmaceutical giants recently announced the initiation of INTerpath-009, a pivotal Phase 3 trial for V940 (mRNA-4157), a potential cancer treatment. However, this development has not been met with universal enthusiasm, as Moderna shares slipped 2.8% to close at $51.81 on Wednesday.
A look at the latest analyst ratings for MRNA reveals a mixed bag of opinions. JP Morgan analyst Jessica Fye, known for her 61% accuracy rate, maintained an Underweight rating while trimming the price target from $70 to $59 on October 4. This move suggests a cautious stance towards Moderna’s future performance.
Similarly, Jefferies analyst Michael Yee, boasting a 63% accuracy rate, echoed this sentiment by maintaining a Hold rating and slashing the price target from $65 to $55 on October 15. This suggests a less optimistic outlook on the company’s potential for short-term growth.
However, not all analysts are bearish on Moderna. B of A Securities analyst Geoff Meacham, with a 60% accuracy rate, maintained a Neutral rating on September 13, though he did lower the price target from $130 to $110. Needham analyst Joseph Stringer, who boasts an impressive 77% accuracy rate, reiterated a Hold rating on the same date.
On the other hand, Evercore ISI Group analyst Cory Kasimov, with a 70% accuracy rate, remains more optimistic with an In-Line rating and a price target of $120, a figure that was maintained on June 27.
The Bottom Line:
As Moderna prepares to release its third-quarter earnings, investors are left with a complex picture. While analysts anticipate a loss, the focus will likely shift to revenue and the company’s forward-looking statements. The recent development with Merck and the mixed bag of analyst ratings suggest that the market is navigating a period of uncertainty regarding Moderna’s future direction. This makes Thursday’s earnings announcement a crucial event for investors seeking to gauge the company’s trajectory in the months ahead.
