Novavax, the vaccine manufacturer, reported Q4 revenue and earnings below Wall Street estimates on Wednesday, emphasizing its ongoing efforts to cut costs and remain financially stable. Despite a decline in demand for its Covid vaccine and other virus-related products worldwide, the company managed to narrow losses compared to the same quarter last year.
Here are Novavax’s Q4 results compared to Wall Street expectations, based on an LSEG analyst survey:
- Loss per share: $1.44 (actual) vs. expected loss of 45 cents
- Revenue: $291.3 million (actual) vs. expected $322 million
The company recorded a net loss of $178.4 million, or $1.44 per share, for the quarter, an improvement from the $182.2 million loss, or $2.28 per share, in the same quarter the previous year. Novavax’s Q4 sales were $291.3 million, down from $357.4 million in the corresponding period in the previous year.
Novavax CEO John Jacobs explained that some revenue had shifted from 2023 to 2024 due to the timing of advance purchase agreements for its Covid shot, clarifying it as a timing element rather than lost sales.
Looking ahead, Novavax anticipates full-year 2024 revenue between $800 million and $1 billion. This projection includes expected revenue from dose delivery schedules and commercial market product sales. Analysts surveyed by LSEG, however, expect 2024 revenue to be around $969.6 million.
For Q1 2024, Novavax forecasts revenue of $100 million, reflecting the conclusion of the current Covid vaccination season, a decrease from the previously expected $300 million.
The company reiterated its commitment to cost-cutting and plans to reduce combined research, development, selling, general, and administrative expenses to a range of $700 million to $800 million in 2024. Novavax had already reduced these expenses to $1.21 billion last year, down from $1.69 billion in 2022. Operating expenses in 2023 were cut by $1.1 billion (41%) compared to 2022, and the workforce was reduced by 30% compared to Q1 2023.
These financial results follow concerns raised by Novavax about its financial stability a year ago, with shares falling more than 50% in the previous year. However, the stock received a significant boost last week when the company resolved a dispute with Gavi, a global vaccine organization, regarding a canceled Covid vaccine purchase agreement. Novavax may pay $300 to $400 million, depending on Gavi’s future vaccine orders over the next five years.
