Moderna drops 3% pre-market after earnings report

Moderna drops 3% pre-market after earnings report

Moderna, Inc. (MRNA) reported its second-quarter earnings on Friday, August 1, 2025, with mixed results that led to a pre-market drop of 3% for the company's stock. The Cambridge, Massachusetts-based biotechnology company reported a quarterly loss of $2.13 per share, which was less than the projected $2.97 per share loss by analysts [1]. Additionally, the company's revenue for the quarter came in at $142 million, exceeding analyst expectations of $112.9 million [1].

The earnings report highlighted several key points. Firstly, Moderna's robust COVID-19 booster sales contributed significantly to the quarter's performance. The Spikevax COVID-19 shot delivered $114 million in sales, surpassing the expected $87 million for the quarter [2]. However, this figure is a significant drop from the peak sales of $18.4 billion in 2022. The company also reported that 40% to 50% of the revenue from COVID-19 boosters will be recognized in the third quarter of 2025, with the remainder expected in the fourth quarter [2].

Moreover, Moderna announced a series of cost-cutting measures to bolster its financial position. The company plans to reduce its global workforce by approximately 10% by the end of the year, which would bring the workforce down to under 5,000 employees [2]. This reduction is part of a broader effort to trim operating expenses, with the company aiming to cut operating costs by $400 million in 2025 [2].

The company also provided an updated sales forecast for 2025, reducing it to $1.5 billion to $2.2 billion, a $300 million cut from the previous projection [2]. This adjustment reflects the company's strategy to focus on new mRNA products, such as its experimental COVID-flu combo shot, to offset the declining COVID-19 vaccine sales and the slower-than-expected rollout of the RSV shot.

Analysts have responded to the earnings report with varying ratings and price targets. JP Morgan analyst Jessica Fye maintains an Underweight rating with a price target of $26 [1], while Evercore ISI Group analyst Cory Kasimov holds an In-Line rating with a price target of $32 [1]. Morgan Stanley analyst Matthew Harrison has an Equal-Weight rating with a price target of $32 [1], and Citigroup analyst Geoff Meacham initiated coverage with a Neutral rating and a price target of $40 [1]. Argus Research analyst John Eade downgraded the stock from Buy to Hold [1].

In conclusion, Moderna's earnings report reflects a mix of positive and negative factors, including strong COVID-19 booster sales and aggressive cost-cutting measures. The pre-market drop in the company's stock price suggests that investors are assessing the company's ability to navigate the changing landscape of the vaccine market and its future prospects.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/46785048/moderna-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TS12M:0-moderna-quarterly-sales-beat-street-estimates-on-covid-booster-sales-cost-cuts/