What long-term trends can investors expect from MRNA's EPS growth?

**Moderna's EPS growth is expected to face significant challenges in the near term**, primarily due to the company's current financial situation and the broader market conditions. Here are the key trends and factors to consider: 1. **Recent Performance**: Moderna's EPS has been negative, with the most recent figure reported at -$2.91 for the quarter ending December 31, 2024. This indicates that the company is currently unprofitable, which is a red flag for investors looking for earnings growth. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |MRNA|MRNA.O|Moderna|2024 Q1|-1715.7894736842102|-3.07|185| |MRNA|MRNA.O|Moderna|2024 Q2|8.011049723756907|-3.33|185| |MRNA|MRNA.O|Moderna|2024 Q3|100.31479538300103|0.03|185| |MRNA|MRNA.O|Moderna|2024 Q4|-629.090909090909|-2.91|185| 2. **Revenue Decline**: Moderna's revenue has fallen sharply, from $19.3 billion in 2022 to $3.2 billion in 2024. This decline is a result of diminished demand for its coronavirus and RSV vaccines, which has significantly impacted the company's financial performance. 3. **Cost-Cutting Measures**: In response to these challenges, Moderna is accelerating its cost-cutting measures, aiming to reduce expenses by $1 billion within the year. While necessary, these reductions could substantially impact its operations and profitability. 4. **Analyst Expectations**: Analysts project that Moderna's EPS will continue to be negative in the near term, with a forecast of -$2.90 for the current quarter. This suggests that investors should not expect EPS growth in the immediate future. 5. **Long-Term Outlook**: The long-term outlook for Moderna's EPS growth depends on the company's ability to innovate and develop new vaccines or treatments. If successful, this could lead to increased revenue and profitability over time. However, this is far from certain and would require significant improvements in the company's performance and market conditions. 6. **Market Sentiment**: Citigroup's neutral recommendation and the average one-year price target of $55.60 suggest that analysts are not overly optimistic about Moderna's short-term prospects. This cautious sentiment is reflected in the stock's recent performance and is likely to continue until there is a clear improvement in the company's financials. In conclusion, investors should not expect significant EPS growth from Moderna in the near term. The company's current focus on cost-cutting and its negative EPS trajectory indicate that it is facing significant challenges. While there is potential for long-term growth if the company can successfully navigate these difficulties, this is not currently reflected in the EPS figures.