Biotechnology company Moderna, Inc. (MRNA) reported a profit for the second quarter that increased from last year, reflecting improved revenues on commercial sales of the company’s COVID-19 vaccine in the U.S.
Both earnings per share and revenues for the quarter topped analysts’ expectations. The company also sees product sales for the fourth quarter to be higher than the third quarter.
For the second quarter, the company reported net income of $2.20 billion or $5.24 per share, down from $2.78 billion or $6.46 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $4.55 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenue for the quarter grew to $4.75 billion from last year’s $4.35 billion, resulting from commercial sales of the company’s COVID-19 vaccine. Analysts expected revenues of $4.07 billion for the quarter.
Product sales for the quarter increased 8 percent to $4.5 billion from last year, primarily driven by a higher average selling price due to customer mix.
Based on its strong financial position and commercial momentum, the Board of Directors has authorized an additional share repurchase program of $3 billion in August 2022 to return excess capital to shareholders.
Looking ahead to fiscal 2022, the company has already signed advance purchase agreements or APAs for product sales of approximately $21 billion for deliveries in 2022. This includes the recently announced agreement with the U.S. government for 70 million doses and an adjustment for doses that remain unallocated by COVAX due to lack of demand.
Moderna anticipates that for sales in the second half, sales will be greater in the fourth quarter than the third quarter, driven by the timing for approval of its updated COVID-19 vaccines.
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