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Moderna (MRNA) Up 9.4% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

It has been about a month since the last earnings report for Moderna (MRNA). Shares have added about 9.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Moderna due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Moderna Q1 Earnings Beat Estimates, Revenues Miss

Moderna incurred loss of 35 cents per share in the first quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 37 cents and the year-ago loss of 40 cents.

Revenues in the quarter were $8.4 million, which missed the Zacks Consensus Estimate of $18.17 million. In the year-ago quarter, revenues were $16 million.

Quarter in Details

Collaboration revenues were $4.5 million, down 68.4% year over year. Grant revenues almost doubled year over year to $3.8 million.

General and administrative expenses were down 11.5% to $24.1 million. Research & development expenses decreased 11.7% to $115.1 million due to a decline in clinical study costs and material costs.

The company ended the quarter with $1.7 billion in cash and cash equivalents, compared with $1.26 billion as of Dec 31, 2019. The company has up to $700 million available in grants and awards.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -8.46% due to these changes.

VGM Scores

Currently, Moderna has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Moderna has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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