Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Is Jumping Today

By Keith Speights - Feb 25, 2021 at 10:02AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The biotech reported better-than-expected revenue in the fourth quarter.

What happened

Shares of Moderna (MRNA 4.97%) were jumping 3.9% higher as of 10:47 a.m. EST on Thursday after rising as much as 11.2% earlier in the day. The gain came after the biotech announced its fourth-quarter results before the market open.

So what

With the biotech stock moving higher, you'd expect that Moderna delivered great results on both its top and bottom lines. You'd be right -- but only in part.

Vaccine vials forming a dollar sign

Image source: Getty Images.

Moderna reported Q4 revenue of $571 million, a stark contrast to the $14 million in revenue generated in the prior-year period and well above the average analyst estimate of $279.4 million. The total included nearly $200 million in sales of COVID-19 vaccine mRNA-1273, which received Emergency Use Authorization (EUA) in the U.S. and Canada in December.

However, Moderna posted a net loss of $272.5 million, or $0.69 per share. This was a lot worse than the net loss of $123.3 million, or $0.37 per share, recorded in the fourth quarter of 2019. It also missed the Wall Street consensus estimate of a net loss of $0.35 per share. 

Investors didn't mind these mixed results, though, for one simple reason: Moderna should make more money this year than many anticipated from its COVID-19 vaccine. The company increased the lower end of its manufacturing range for 2021 to 700 million doses from 600 million doses. It hopes to supply as many as 1 billion doses of mRNA-1273 this year.

Now what

The future continues to look bright for Moderna. Because of soaring demand, the company is boosting its production capacity of mRNA-1273 for 2022 to 1.4 billion doses. Moderna should almost certainly continue to report tremendous revenue growth throughout this year and beyond.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
$149.95 (4.97%) $7.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.