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Novavax higher after posting quarterly earnings

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Novavax reported mixed quarterly earnings, posting a beat on the top line but not on the bottom line. The pharmaceutical company reported $279.7M in revenue and a loss per share $2.70, compared to Street estimates of in $202.6M revenue and a loss per share of $2.24. Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the details.

Video Transcript

SEANA SMITH: We have some breaking news here. Novavax is out with its earnings report. Jared Blikre has that for us. Jared.

JARED BLIKRE: It's a beat on the top line number, but not the bottom. So let's get straight to those numbers. Revenue coming in at $279.7 million versus $8.82 million a year ago. That's much higher than the estimate of $202.6 million. But the bottom line number coming in with a loss per share of $2.70. And that is quite a bit greater wider than the estimated loss of $2.24. Also noting that cash and cash equivalents ended $553.4 million versus $78.8 million a year ago.

And here's some commentary from the release. They're saying that significant increase in revenue was comprised of revenue for services performed under the Coalition for Epidemic Preparedness Innovation's agreement and participation in Operation Warp Speed. So my read of that is, it's expensive to be in the vaccine business, but hopefully, it pays off eventually.

Now, fourth quarter research and development expenses, those increased to $401.2 million, compared to $29.3 million in the same period last year. Now let's take a look at the charts here on the YFi Interactive. You can see the stocks up about 3% now, after reporting those results. Investors don't seem to be too concerned about those increased expenses. And you take a look at a one-year chart here. You can see quite the wild ride for Novavax, up 1400%. So just wrapping it up here, we got a beat on the top line, but a miss on that bottom line. A bigger loss than expected, guys.