Novavax Stocks Plummet by 19% Citing a Miss on Revenues and Earnings

On Monday, Novavax posted its results for the revenues and earnings generated in the initial quarter. The officials confirmed it was a profitable quarter they recorded due to the rolling out of the vaccine for COVID across the globe.

According to officials, they still ended up missing the expectations the analysts had set for the earnings and revenues.

Earnings Statistics

For the quarter, Novavax officials posted they accumulated $203 million in the form of net income. The executives did reveal that in the same quarter last year, they incurred a $222.7 million net loss.

Based on the performance in the respective months, the executives at Novavax have upgraded the revenue guidance for the year 2022. Initially, the executives had set the guidance for 2022 to $4 billion. The guidance has now been upgraded to $5 billion, given the rise in the profits.

Novavax Awaits Green Signal from Covax

Novavax still awaits a response from Covax, in regards to the global distribution of the COVID-19 vaccine. Covax is the international partnership representing an alliance of health organizations from all over the world for vaccine circulation among nations with lower incomes.

For now, Covax hasn’t provided clear information surrounding the quantities and timing for the provisioning of the vaccine. Once the details are provided and confirmed, only then the order process can be initiated.

Jim Kelly, the CFO at Novavax revealed that the particular factor will prove very critical towards the revenue guidance. Kelly tried his best to explain the entire situation to the stakeholders/investors during the earnings calls.

Stanley Erck, the CEO at Novavax also added to the statement Jim Kelly made about the future orders from Covax. Erck stated they are not fully aware of how the marketplace works in countries with middle- and low incomes.

Novavax’s Performance in Extended Trading and Growth in Local Market

Following the earnings call, Novavax recorded a loss of 19% stock price value in the extended trading.

While Novavax executives and analysts are not sure about the international market, they have very high hopes for the local (US) market.

John Trizzino, the chief commercial officer at Novavax shared his thoughts and the possibilities surrounding the growth of the guidance. He claimed that their guidance estimations will be justified if the FDA authorizes them for the circulation of vaccine shots.

He indicated that the matter is currently with the FDA and they are yet to authorize the distribution of vaccines for people age 18 or older.

If the FDA approves the application, Novavax is all set to distribute its two-dose primary vaccination throughout the country. This would eventually work like a charm for Novavax in increasing its share prices in near future.