Why Moderna (MRNA) Shares Are Diving Today - Moderna (NASDAQ:MRNA)

Moderna Inc MRNA reported Thursday, a Q4 FY22 EPS of $3.61, compared to the $11.29 posted a year ago, missing the consensus of $4.68.
Revenue was $5.08 billion compared to $7.21 billion a year ago, slightly above the consensus of $5.02, mainly due to a decline in COVID-19 vaccine sales.
Product sales for the fourth quarter of 2022 were $4.9 billion, a 30% Y/Y decrease primarily driven by lower sales volume compared to overall higher demand a year ago.
Also Read: Pfizer/BioNTech Get Ready For London Court Battle With Moderna Over COVID-19 Vaccine Patents.
The cost of sales for FY22 almost doubled from $2.62 billion to $5.4 billion, mainly due to a charge of $1.3 billion for inventory write-downs related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives, related cancellation charges of $725 million, and an expense for unutilized manufacturing capacity of $776 million.
These charges are driven by lower demand, particularly from low-income countries, a shift in product demand to omicron-targeting COVID-19 bivalent boosters, and costs associated with surplus production capacity.
Operating income reached $1.58 billion, down from $5.4 billion a year ago.
Outlook: Moderna has COVID vaccine sales of approximately $5 billion currently contracted for 2023 delivery, with potential additional sales opportunities in the U.S. (endemic private and government markets), Europe, Japan, and other key markets.
The company expects product sales in 1H of 2023 of approximately $2.0 billion.
Price Action: MRNA shares are down 3.42% at $152.75 during the premarket session on the last check Thursday.

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Moderna's Q4 Earnings Fall 68% On Sliding COVID-19 Vaccine Revenues, Miss Earnings Expectations

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