Moderna Q2 FY 2022 Earnings Report Recap

MRNA beat earnings and revenue estimates

Key Takeaways

  • Moderna sees continuing strong demand for its COVID-19 vaccine.
  • The company has advance purchase agreements for delivery in FY 2022 of around $21 billion in sales.
  • The company has built up $18 billion in cash on its balance sheet, enabling it to finance development of new COVID-19 treatments a well as other drugs.
  • Moderna announced a $3 billion stock purchase program.
Moderna Earnings Results
 Metric Beat/Miss/Match Reported Value  Analysts' Prediction 
Earnings Per Share ($)   Beat  $5.24  $4.55
Revenue ($B)   Beat  $4.7  $4.0

Moderna (MRNA) Financial Results: Analysis

Moderna, Inc. (MRNA) reported Q2 FY 2022 earnings results that far surpassed analyst expectations. Earnings per share (EPS) was positive for the sixth straight quarter, beating estimates by a wide margin. Revenue also came in well above analyst expectations. Moderna's revenue of $4.7 billion, $700 million higher than analysts estimated, was fueled by sales of its COVID-19 vaccine. Moderna's revenue rose compared to the prior-year-quarter while analysts had expected a decline.

MRNA Vaccine News

Moderna's COVID-19 vaccine now accounts for nearly all of its revenue. The company is seeing continued strong demand for the vaccine, though revenue growth has slowed in recent quarters as COVID-19 cases have fallen in many nations worldwide. In the latest big order, Moderna agreed to supply the U.S. government with 66 million doses of its COVID-19 booster vaccine with an option to purchase up to an additional 234 million doses.

Moderna's COVID-19 vaccine is also seeing broadening use across age groups and globally. On July 17, the U.S. Food and Drug Administration (FDA) gave emergency use authorization (EUA) to Moderna's vaccine for children as young as 6 months. The FDA amended its EUA to include the use of the Moderna's vaccine for ages 6 months through 17 years. Until then, the vaccine had been authorized for use in adults 18 years of age and older. In late March 2022, the FDA approved a second booster dose of the vaccine for adults 50 years of age and older and for certain immunocompromised individuals.

In mid-July Canadian and Australian regulators gave Moderna's vaccine full or provisional approval, respectively, for use of its vaccine on children from 6 months to 5 years.

MRNA Outlook

In its quarterly release, Moderna said that it has advanced purchase agreements (APAs) for sales of its COVID-19 vaccine valued at about $21 billion in 2022. The company said it expects sales to be bigger in the fourth quarter than the third quarter of FY 2022, driven by the timing for expected approval of updated Moderna COVID-19 vaccines.

In the quarterly release, Chief Executive Officer (CEO) Stéphane Bancel discussed new COVID-19 products and other treatments that are expected to broaden the company's revenue base. He said the company has four infectious disease vaccines in Phase 3 trials, and that Moderna expects significant data from proof- of-concept studies in rare diseases and immuno-oncology later this year. The company said it expends to spend $4 billion in 2022 on expenses for research & development (R&D), and selling, general & administrative (SG&A) expenses.

The company's shares were up 15.9% at 10:45am Eastern Daylight Time (EDT) after results were announced. During the past 12 months as of Aug. 2, 2022, Moderna stock has posted a total return of -53.4%, dramatically behind the -6.6% return of the S&P 500.

Moderna's next earnings report (for Q3 FY 2022) is expected to be released on Nov. 3, 2022.

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