Novavax Misses Q2 Earnings Estimates, But Stock Soars on Sanofi Deal and Expense Cuts

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Novavax Misses Q2 Earnings Estimates, But Stock Soars on Sanofi Deal and Expense Cuts

Key Takeaways

Novavax (NVAX) reported second-quarter 2024 earnings per share of 99 cents, missing the Zacks Consensus Estimate of $1.82. However, earnings rose 71% year over year. Revenues for the quarter came in at $415.5 million, also falling short of the Zacks Consensus Estimate of $453.7 million. The top line declined 2% year-over-year.

Product sales: $19.9 million, exceeding model estimates of $15 million but missing the Zacks Consensus Estimate of $26 million.

$395.6 million, including $391 million from the upfront payment received for the Sanofi agreement.

$107 million, down 51% year over year due to reduced clinical and manufacturing spending.

$101 million, up 8% year over year due to fees associated with the Sanofi agreement.

$1.1 billion as of June 30, 2024, compared to $496 million as of March 31, 2024.

Total revenues: $700-$800 million for 2024, down from previous guidance of $970 million to $1.17 billion.

$275-$375 million for 2024.

below $500 million for 2025 and below $350 million for 2026.

Novavax signed a multi-billion dollar deal with Sanofi in May 2024.

Sanofi will make an upfront payment of $500 million and up to $700 million in milestone payments.

Sanofi will also pay tiered double-digit percentage royalty payments on sales of Nuvaxovid and other combination vaccines.

Novavax has submitted two regulatory filings with the FDA: one for an EUA for its updated COVID-19 vaccine and another for full approval.

Decisions are expected before the start of the 2024-2025 vaccination season and by April 2025, respectively.

Novavax plans to initiate a late-stage study on its COVID-19-Influenza Combination vaccine and standalone influenza vaccines by the end of 2024.

Data from this study is expected in mid-2025.

Novavax shares rose 9% on August 8, 2024, likely due to the reduction in operating expenses beyond 2024.

Year to date, the stock has surged 143.3% against the industry's 3.5% fall.

Novavax currently carries a Zacks Rank #3 (Hold).

Entrada Therapeutics and Fulcrum Therapeutics are both rated Zacks Rank #1 (Strong Buy).

Entrada Therapeutics has seen improved earnings estimates and a 42.18% four-quarter average earnings surprise.

Fulcrum Therapeutics has also seen improved earnings estimates and a 393.18% four-quarter average earnings surprise.