Moderna Stock Down Pre-Market on Mixed 2024 Earnings

Moderna, Inc. (MRNA) shares fell approximately 5% in the pre-market session on Friday, following the release of the company's 2024 earnings results. While the biotechnology company reported revenue that topped consensus estimates, its earnings per share (EPS) missed Street forecasts, leading to a decline in investor sentiment. The mixed earnings results raise questions about the company's growth potential and risk profile, with implications for its valuation and investment attractiveness.

Moderna reported a net loss of $1.1 billion, or $2.91 per share, for the fourth quarter of 2024, compared to earnings of $217 million, or $0.55 per share, in the year-earlier period. Revenue fell to $1.0 billion from $2.8 billion a year ago, primarily due to the earlier launch of the updated COVID-19 vaccine in the U.S., which shifted sales into the third quarter. The company's COVID-19 vaccine, Spikevax, generated $923 million in sales during the quarter, while its respiratory syncytial virus (RSV) vaccine, mRESVIA, contributed $15 million.



Moderna's guidance for 2025 revenue, ranging from $1.5 billion to $2.5 billion, was lower than the FactSet consensus of $2.4 billion. The company expects its ending cash balance to be approximately $6 billion. Moderna submitted three investigational mRNA products for regulatory approval, including its next-generation COVID vaccine, an RSV vaccine for high-risk adults aged 18 to 59, and a flu/COVID combination vaccine.



The mixed earnings results may lead to a more cautious market perception of Moderna's growth potential and risk profile, with implications for the company's valuation and investment attractiveness. While the company's revenue beat expectations, the significant decline in COVID-19 vaccine sales and the modest RSV vaccine sales may raise concerns about its ability to maintain growth momentum. The wider-than-expected loss and the guidance for a lower revenue range in 2025 may also indicate higher risks, such as potential challenges in achieving profitability and meeting revenue targets.

To mitigate these risks and improve its long-term prospects, Moderna should focus on diversifying its product portfolio, expanding its geographic reach, optimizing its manufacturing and supply chain, controlling costs, and investing in research and development. By implementing these strategic adjustments, the company can work to improve its financial performance and regain investor confidence.

In conclusion, Moderna's mixed 2024 earnings results have led to a decline in the company's stock price in the pre-market session. The market's perception of the company's growth potential and risk profile may shift, with implications for its valuation and investment attractiveness. To address these concerns, Moderna should focus on implementing strategic adjustments to improve its long-term prospects and regain investor confidence.