Moderna posts unexpected quarterly profit despite lower ‎demand for Covid vaccines

Moderna on Thursday blew past estimates for first-quarter earnings and revenue, posting a surprise quarterly profit, despite lower demand for Covid vaccines, its only marketable product, according to CNBC.

The biotech company generated first-quarter sales of $1.9 billion, driven by Covid shot revenue deferred from 2022. That’s down more than 30% from the $6.1 billion it recorded in the same period a year ago amid a resurgence of Covid cases.

Moderna posted net income of $79 million, or 19 cents per share, for the quarter. That’s compared with $3.66 billion in net income, or $8.58 per share, reported during the same quarter last year.

Still, the Massachusetts-based company’s stock edged lower in premarket trading Thursday. Shares are down more than 27% for the year through Wednesday’s close, putting the company’s market value at around $50 billion.

Moderna maintained its full-year guidance of around $5 billion in revenue from its Covid vaccine, which will come from signed government contracts for the shot.

CEO Stéphane Bancel said on CNBC’s “Squawk Box” he believes the company is “well on our way to execute” that target.

The company is also having discussions about new contracts with customers in Europe, Japan and in the U.S. Bancel noted the company is in active discussion with U.S. government agencies, pharmacy chains and hospital chains about new contracts.

“It’s going to be a transition year,” Bancel told CNBC. He added that Moderna is “investing aggressively to grow the company.”