Pharmaceutical company Moderna Inc (Nasdaq: MRNA) reported better-than-anticipated fiscal 2021 fourth-quarter results. The COVID-19 vaccine (Spikevax) maker also upwardly revised its FY 2021 COVID-19 vaccine sales outlook, while revealing a fresh share repurchase plan for $3 billion. The stock ended Thursday’s trading session at $156.23, an increase of $20.50 or 15.10% from the prior close.
The Cambridge, Massachusetts-based company reported fourth-quarter revenues of $7.211 billion, compared with $571 million in the similar quarter of FY 2020.
For the quarter ended December 31, 2021, the company swung to a profit of $4.868 billion, or $11.29 per share, compared with a net loss of $272 million, or $0.69 a share in the quarter ended December 31, 2020. Analysts surveyed by Refinitiv had anticipated the company to post earnings of $9.90 per share on revenues of $6.79 billion.
Regarding the initiatives taken by the company, Stéphane Bancel, Chief Executive Officer of Moderna, said, “We are entering 2022 with a remarkable team and strategic priorities to continue advancing mRNA vaccines and therapeutics to impact human health.”
The company generated $6.935 billion from selling 297 million doses of Spikevax in the 4Q 2021 alone. In 4Q 2020, Moderna generated only $200 million from product sales.
For FY 2021, Moderna reported a net profit of $28.29 per share, compared with a net loss of $1.96 per share in FY 2020. Also, the FY 2021 revenue was $18.50 billion, a steep increase from $803 million in FY 2020. The company generated $17.70 billion from product sales in FY 2021.
The company’s COVID-19 vaccine Spikevax has received approval from over 70 countries across the globe. Overall, in FY 2021, Moderna delivered 807 million doses.
Also, the company has inked APAs (advance purchase agreements) worth roughly $19 billion for the supply of Spikevax this year. Additional purchase options worth about $3 billion have been signed as well. Moderna is also in talks for additional orders (2022).
Notably, the company anticipates FY 2022 R&D and SGA (selling, general and administrative) expenses to reach about $4 billion. Furthermore, Moderna’s Board has approved a fresh share repurchase program worth $3 billion. Interestingly, the previous share repurchase program for $1 billion, revealed in August last year, was completed at the end of January 2022.
The quarterly earnings beat and solid APAs for the COVID-19 vaccine are expected to keep the stock of Moderna slightly bullish in the short term.
The historical price chart indicates that the stock of Moderna is trading near its major support at 155. The next minor resistance is anticipated only near 220 levels. Additionally, the stochastics indicator is also in the oversold region. Therefore, we are anticipating the stock to rally further in the days ahead.
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