Moderna (NASDAQ:MRNA) reported a steep decline in third-quarter revenue as demand for COVID-19 vaccines continued to fade, but the results still surpassed Wall Street estimates, supported by stronger-than-expected vaccine sales and lower costs.
The biotechnology company posted revenue of $1.02 billion, down 45% year-over-year, yet comfortably ahead of analysts’ forecasts of $829.1 million. The better-than-expected performance reflected lingering sales of its COVID-19 shot, though volumes remained a fraction of what they were at the height of the pandemic.
A substantial reduction in operating expenses also cushioned results, helping Moderna post a loss of $0.51 per share — narrower than projections for a $2.21 loss and marking a reversal from profit in the same quarter last year.
The weaker sales trend mirrors recent commentary from Pfizer, which warned that COVID-19 vaccine revenues are likely to remain under pressure due to fewer infections and updated U.S. vaccination guidelines. In September, the Centers for Disease Control and Prevention (CDC) recommended that vaccines be given only following shared decision-making between patients and physicians, creating a potential bottleneck for uptake.
Speaking to Reuters, Moderna CFO James Mock acknowledged that the CDC’s timing “factored into a drop in sales in the U.S.”
In light of these dynamics, the Massachusetts-based drugmaker adjusted its full-year revenue outlook, now projecting between $1.6 billion and $2 billion, compared to its previous guidance of $1.5 billion to $2.2 billion.
Despite the trimmed forecast, Moderna’s shares rose more than 5% in premarket trading on Thursday, as investors took encouragement from the company’s cost discipline and better-than-expected results.