Moderna Stock Falls Despite Surpassing Q2 2024 Earnings Forecasts

Moderna, Inc. (NASDAQ:MRNA) reported a significant decline in its second quarter 2024 financial results, with revenues dropping 37% year-over-year to $241 million. This decrease is largely attributed to a decline in sales of its COVID-19 vaccine, Spikevax, which totaled $184 million for the quarter. The company also posted a GAAP net loss of $1.3 billion, although this was a 7% improvement from the previous year. Despite these setbacks, Moderna exceeded Wall Street's expectations and managed to reduce its cost of sales by 84%.

In response to lower than anticipated sales in Europe and increased competition in the U.S. respiratory vaccine market, Moderna has revised its full-year sales guidance downward to a range of $3 billion to $3.5 billion, from an earlier forecast of $4 billion. This announcement led to a 10% drop in the company's shares during premarket trading. CEO Stéphane Bancel noted the challenges posed by the competitive landscape but expressed optimism about returning to sales growth in 2025 and breaking even by 2026, buoyed by the company's expanding pipeline, which includes 45 products in development and five in late-stage trials.

Moderna's RSV vaccine, mRESVIA, has been approved in the U.S. and Europe, with shipments beginning in July 2024. The company also reported positive Phase 3 data for a combination vaccine against influenza and COVID-19. Despite the headwinds, Moderna remains focused on executing its plans for the upcoming COVID-19 season and driving vaccination coverage rates through collaborations with public health officials, healthcare providers, and pharmacies.