Moderna Inc. (NASDAQ: MRNA) will report Q2 earnings on August 3, 2023, with MRNA stock currently down by 3.16%. Can it surpass the expectations? The pharmaceutical giant has announced reporting its quarterly earnings before the opening bell. With COVID-19 fear diminishing and vaccine sales declining, experts are skeptical of the outcome.
Moderna Inc. (MRNA) Stock: Financial Analysis
On July 31, 2023, Cathie Wood’s Ark Invest sold around 64,800 shares of EV maker BYD Co. Ltd. and purchased 61,741 Moderna stocks. A leader in mRNA technology, The Genomic Revolution ETF also bought 61,741 Moderna Shares worth $7.6 Million. The pharmaceutical giant is handling the decline in the COVID-19 vaccine market reasonably well.
Zacks Consensus Estimate and other experts in the area feel that Moderna sales in the second quarter would be around $233 Million to $246 Million. The decline in vaccine sales could cause the company to report its first quarterly loss in over two years.
Last week, Moderna Inc. agreed with the Chinese government to research and develop mRNA medicines in the country. According to the memorandum of understanding (MoU) signed, the developed drug would be exclusively for Chinese citizens and would not be exported.
Moderna Inc. (NASDAQ: MRNA): Technical Analysis
MRNA stock, at press time, is trading at $113.94 with a drop of 3.16%; previous close and open were at $117.66 and $117.00, respectively. The 52-week range is from $113.77 to $217.25, indicating that a slight push could make new lows. With a volume of 4.80 Million shares, the market cap is $43.435 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 9.80, indicative of an undervalued stock price. At the same time, the (TTM) earnings per share (EPS) is $11.63, showcasing strength. Analysts placed a 2.29 rating for HOLD and estimated a price target at $172.02 with a 51.0% upside.
Moderna Inc. reported Q1 earnings on May 4, 2023, where the reported revenue of $1.862 Billion surpassed the expected value of $1.178 Billion by 58.05%. Compared to the previous quarter, the revenue fell by 69.30%. At the same time, the reported earnings of $0.19 exceeded the estimated value of negative $1.747 by a whopping 110.87%.
Compared to the previous quarter, EPS is down by 97.79%. Similarly, operating expenses gained 13.81% to $305.00 Million, and operating margin (TTM) is 32.05%.
Revenue (TTM) stands at $15.06 Billion, and net income dropped by 92.97% to 4.24. Moderna stock price fell 7.50% in a week, 34.29% in six months, and 37.00% YTD.
The subsequent earnings will be posted on August 3, 2023, where the earnings are expected to be negative $3.935 and revenue to be around $307.667 Million. With the bar to beat already set lower by the experts, the company could beat the estimates. After considering Moderna’s financial health and sales figure, it’s a 50/50 chance.
Moderna Inc. (MRNA) Stock: Candle Exploration
With the current price brushing the 52-week low, it is followed by a substantial drop. It should be noted that a descending 200EMA and a stooping 50EMA hint at a price drop. Additionally, the RSI of 33.78 showcases weakness, and all these metrics could pull the price to the expected limit of $100.00.
Although positive earnings could reverse the trend and make price action go north, as experts predicted, its possibility is slim. Since the start of 2023, there has been a pattern of short pull and hard fall being played by big players. Now, only an extremely positive earnings report could pull the price up.
