Novavax Q2 Miss Estimates, Updates FY24 Revenue View Below Market; Stock Dips

(RTTNews) - Vaccine developer Novavax, Inc. (NVAX) on Thursday reported higher second-quarter earnings, but below market estimates, with weak sales. The company further updated fiscal 2024 revenue outlook to reflect revenue recognition of Sanofi Payment, below market estimates.

In pre-market activity on the Nasdaq, Novavax shares were losing around 16 percent to trade at $9.01.

Effective January 1, 2025, Sanofi will assume primary commercial responsibility for Novavax's updated 2024-2025 formula COVID-19 vaccine (NVX-CoV2705) in the U.S., Europe and select major markets not currently subject to Novavax Advance Purchase Agreements or APAs or existing partnership agreements.

For the year, the company now expects total revenues of $700 million to $800 million, compared to previously expected total revenues of $400 million to $600 million.

Analysts on average expect the company to report revenues of $936.38 million for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company now projects product sales of $275 million to $375 million, and Licensing, Royalties and Other revenue of around $425 million.

In May, the company said it expects combined Revenue and Sanofi Agreement Payments between $970 million and $1.17 billion, and initial Sanofi Agreement Payments of around $570 million.

In its second quarter, Novavax's earnings increased from last year but missed the Street estimates.

The company's earnings totaled $162.38 million, or $0.99 per share, compared to $58.01 million, or $0.58 per share last year. Analysts had expected the company to earn $1.64 per share.

The company's revenue for the quarter fell 2.1 percent to $415.48 million from $424.43 million last year. The Street was looking for revenues of $458.57 million for the quarter.

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