After-Hours Alert: Why Novavax Stock Is Plunging

Novavax Inc NVAX shares are tanking in Tuesday's after-hours session after the company reported weak fourth-quarter results and warned that "substantial doubt exists" regarding its ability to continue.

What Happened: Novavax said fourth-quarter revenue increased 61% year-over-year to $357 million, which missed average analyst estimates of $383.14 million, according to Benzinga Pro. The company reported a net loss of $182 million, improved from a net loss of $846 million year-over-year. Novavax ended the quarter with $1.3 billion in cash and equivalents.

Novavax also appointed John C. Jacobs as president and CEO of the company. 

"Much has been achieved over the past three years, and based on the foundation that has been laid to date, I believe that Novavax has significant potential for a bright future," Jacobs said.

Novavax noted that it intends to focus on delivering a competitive product for the upcoming 2023 fall vaccination season. The company also aims to reduce its rate of spend, manage cash flow and evolve the company's scale and structure by leveraging its technology platform.

The company said, "substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued."

Novavax did not provide forward guidance, but the company is set to hold a conference call to discuss these results at 4:30 p.m. ET.

NVAX Price Action: Novavax has a 52-week high of $91 and a 52-week low of $8.51.

The stock was down 23.3% after hours at $7.10, according to Benzinga Pro.

Photo: Jernej Furman from Flickr.