Moderna Q2 Earnings: Earnings Beat, COVID-19 Inventory Write-Off, Additional Share Buyback

Moderna Inc MRNA reports a Q2 EPS of $5.24, compared to the $6.46 posted a year ago, beating the consensus estimate of $4.59.

Revenue was $4.75 billion compared to $4.34 million a year ago, beating the consensus of $4.07 billion. Sequentially sales declined almost 22% from $6.1 billion. Product sales were $4.5 billion, +8% Y/Y, primarily driven by a higher average selling price due to the customer mix.

The company incurred $499 million for inventory write-downs related to the COVID-19 vaccine's expiry. The charge includes a loss on firm purchase commitments of $184 million and an expense for an unutilized external manufacturing capacity of $131 million. 

Operating income reached $2.45 billion, down from $3.06 billion a year ago. Moderna held cash, cash equivalents, and investments of $18.1 billion.

Buyback: Moderna has authorized an additional share repurchase program for $3 billion. The $3 billion repurchase program announced in February is continuing and currently has approximately $1 billion outstanding.

Outlook: Moderna reiterates 2022 Advanced Purchase Agreements of approximately $21 billion, including the recently announced agreement with the U.S. government for 70 million doses.

Price Action: MRNA shares are up 4.33% at $167.77 during the premarket session on the last check Wednesday.

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