Moderna shares jumped 8.96% to close at $263.08 on Friday after the biotechnology company reported a return to profitability in the third quarter and lifted its full-year revenue growth guidance, surprising Wall Street with results that far exceeded expectations.
The company posted revenue of $1.31 billion for the quarter, a 29% increase from the same period a year earlier and well above the $890.3 million consensus estimate tracked by FactSet. Net income came in at $162 million, reversing a $200 million loss in the prior-year quarter. Earnings per share reached 38 cents, compared with analyst forecasts for a loss of $1.10 per share.
The strong quarter was driven largely by international demand for Moderna's Covid-19 vaccines. The US market generated $780 million in revenue, while overseas markets contributed $533 million. Management credited higher international vaccine sales and the execution of strategic partnerships with governments in the UK, Canada, and Australia. The company also highlighted a five-year agreement with a manufacturer in Mexico for Covid-19 vaccines, which it expects to support recurring revenue and broaden its market footprint.
Raised outlook signals stabilizing business
Following the better-than-expected results, Moderna raised its full-year revenue growth forecast to a range of 15% to 25%, up from its previous outlook of up to 10%. The company expects revenue to be split roughly evenly between domestic and international markets. The improved guidance suggests Moderna is stabilizing after the sharp decline in Covid-19 vaccine demand that followed the pandemic's peak.
Chief Executive Stephane Bancel said the company's financial recovery and manufacturing capabilities would help it expand into new areas of medicine. "Moderna, unlike what most people thought a year ago, is not a Covid-19 company," Bancel said. "It's a broad mRNA platform company that happens to have its first product being a Covid-19 vaccine." The company holds approximately $8 billion in cash, which Bancel said would primarily fund research and development. "We think now is the time to invest," he added.
Respiratory portfolio and pipeline expansion
Moderna's respiratory vaccine business remains the core of its revenue base. In August, the US Food and Drug Administration approved its mRNA-based influenza vaccine, mFlusiva, for adults aged 50 and older. The company is targeting a limited US launch during the upcoming flu season, as the approval arrived after the annual contracting cycle. The vaccine also received regulatory clearance in Canada on Thursday, alongside a combination mRNA vaccine targeting both influenza and Covid-19.
Beyond respiratory products, investors are increasingly focused on Moderna's oncology pipeline. The company is developing intismeran autogene, a personalized melanoma vaccine, in partnership with Merck. The treatment is being studied in combination with Merck's Keytruda immunotherapy in patients at high risk of melanoma recurrence after surgery. Expanded Phase 3 results showed the combination reduced the risk of melanoma spreading or returning.
However, a recent data leak triggered an 18% single-session decline in Moderna shares, underscoring the sensitivity of the stock to pipeline developments. Despite that setback, Moderna said it is working toward regulatory submissions and preparing for a potential commercial launch with Merck. The partners are also exploring the treatment across other tumor types as Moderna seeks to broaden its oncology footprint.
With the stock up nearly 682% year-to-date heading into Friday's session, the rally reflects growing investor interest in the company's experimental cancer vaccine and broader mRNA pipeline. The quarter's results provide a firmer financial foundation as Moderna balances its legacy Covid-19 franchise with ambitious expansion into new therapeutic areas.
This article is for informational purposes only and does not constitute financial advice.
