Follow Novavax to never miss an important update.
Novavax reported second-quarter revenue of 57 million dollars, which was higher than the 50 million dollars analysts expected. The company also raised its revenue forecast for the full year. This growth is coming from licensing its technology to larger partners rather than selling its own vaccines. Its partner Sanofi is moving forward with a combined COVID-19 and flu shot, and Novavax expects a 75 million dollar payment in mid-2027 once it finishes handing over the manufacturing process to them.
This shift is exactly what the company needs to do to stay viable. By letting giants like Sanofi handle the expensive risks of clinical trials and sales, Novavax can focus on its Matrix-M technology, which is an ingredient that helps vaccines work better. The company also cut its expected spending on research and overhead by another 10 million dollars. For long-term owners, the goal is to see these one-time payments turn into steady royalties while keeping costs low enough to reach consistent profit.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company is set to release its second quarter financial results tomorrow morning. This will be an important check on the progress of its shift toward a licensing model, where it earns royalties from partners rather than manufacturing vaccines itself. We will be looking for updates on its costs and any new milestones from its technology partnerships. These results help show if the business is successfully moving toward sustainable profit after its recent restructuring.
Source: PRNewsWire
Analysts have maintained a steady outlook on the stock following its recent earnings report. Most analysts, 17 of 23, rate it a buy, and the average target price of $18 suggests a potential upside of 105% from today's price.
The company has beaten earnings expectations in seven of the last eight quarters. This suggests management has become much better at setting realistic bars and clearing them as the business stabilizes.
| Expectation | |
|---|---|
| EPS | $-0.12 |
| Revenue | $73M |