What happened
Shares of Moderna (MRNA 0.74%) rose 5.8% on Wednesday after the pharmaceutical leader delivered an impressive first-quarter report.
So what
Moderna's revenue soared 213% to $6.1 billion. The company's net income, in turn, tripled to $3.7 billion, or $8.58 per share. Those figures were significantly above Wall Street's estimates. Analysts had forecast revenue and earnings per share of $4.6 billion and $5.21, respectively.
Moderna's vaccine, Spikevax, has become a key tool in the battle against COVID-19. The biotech generated $5.9 billion in vaccine sales in the first quarter, and management expects a total of $21 billion in 2022.
Image source: Getty images.
Now what
Booster shots are likely to be a key source of future sales for Moderna. "The virus is mutating to become more and more infectious, and there's waning immunity," CEO Stéphane Bancel said during an interview on CNBC. "It is going to be really important to boost people in the fall with a better-adapted vaccine, which is what we're working toward."
Vaccines for children are expected to be another source of growth. Moderna has requested Emergency Use Authorization for its COVID vaccine in kids as young as 6 months old and hopes to receive the authorization from the Food and Drug Administration by June.
Additionally, vaccine sales have allowed Moderna to build a fortresslike balance sheet. Its cash and investments grew to more than $19.3 billion as of March 31. The company intends to use some of this capital to fund its extensive research and development program, while also rewarding shareholders with stock buybacks.
