Novavax to Report Q3 Earnings: Here's What to Expect

Novavax NVAX is scheduled to report third-quarter 2024 earnings on Nov. 12, before the opening bell. In the last reported quarter, the company’s earnings missed estimates by 45.60%.The Zacks Consensus Estimate for sales is pegged at $57.3 million while that for earnings is pinned at a loss of 87 cents per share.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Factors Shaping NVAX’s Upcoming ResultsAlthough Novavax secured the FDA’s authorization for an updated version of its protein-based COVID-19 vaccine toward the end of August, it was delayed compared to the approvals/authorizations granted to mRNA-based vaccines marketed by rivals Pfizer and Moderna. This earlier head-start is likely to have benefited both mRNA-based vaccines. Also, the Pfizer and Moderna vaccines hold an edge over NVAX’s vaccine. The mRNA-based vaccines have been designed to target the virus’s KP.2 strain, which is a more advanced strain compared to JN.1, the strain which the Novavax vaccine is designed to target.We expect minimal vaccine sales during the quarter based on the above factors. The Zacks Consensus Estimate for the company’s product sales is pegged at $45 million.Last month, Novavax suffered a major setback when the FDA placed a clinical hold on two of its pipeline programs, COVID-19-Influenza Combination (CIC) and stand-alone influenza vaccine candidates. This hold was placed after a study participant who took the CIC shot as part of a phase II study reported nerve damage.The clinical hold is likely to delay Novavax’s original plans to start the phase III immunogenicity study on the CIC and standalone flu vaccines before 2024-end. While management does not believe that NVAX’s vaccines are responsible for the adverse event, it is working closely with the FDA to successfully resolve the issue and start the late-stage development of both vaccines. Investors will likely seek an update from management on its ongoing discussions with the agency regarding this issue.Although Novavax’s current COVID-19 vaccine remains unaffected by this clinical hold, some investors have expressed concerns that it could jeopardize the company’s recently signed multi-billion dollar deal with pharma giant Sanofi SNY for its COVID-19 vaccine. We expect management to address such concerns in the upcoming earnings call.Starting next year, Sanofi will market the company’s COVID-19 vaccine and also use it to develop novel COVID-19-influenza combination vaccines. As part of this deal, the company received a payment of $570 million from SNY, which includes $70 million in equity investment. NVAX is also eligible to receive milestone payments of up to $700 million and royalties on sales of the COVID-19 vaccine from Sanofi.Investors would also seek an update from Novavax on the progress of its pre-clinical pipeline, which includes a vaccine for H5N1 bird flu. The company is also advancing core technology for different uses like mucosal vaccination and high-density nanoparticles.NVAX’s Earnings Surprise HistoryNovavax’s shares have surged 85.6% year to date against the industry’s 1.0% decline.Image Source: Zacks Investment ResearchThe biotech firm’s earnings missed estimates in three of the trailing four quarters and met once, delivering a trailing four-quarter average negative surprise of 52.42%.Novavax, Inc. Price and EPS Surprise Novavax, Inc. price-eps-surprise | Novavax, Inc. QuoteWhat Our Model Predicts for NVAXOur proven model does not predict an earnings beat for Novavax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the oddsof an earnings beat. That is not thecase here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Novavax has an Earnings ESP of -0.29% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderHereare a few biotech stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.Legend Biotech LEGN has an Earnings ESP of +18.22% and a Zacks Rank #2 at present.Shares of LEGN have lost 33.5% year to date. Legend Biotech beat on earnings in each of the trailing four quarters, delivering an average surprise of 62.02%. LEGN is set to report third-quarter results on Nov. 12, before the opening bell.Wave Life Sciences WVE has an Earnings ESP of +20.48% and a Zacks Rank #2 at present.WVE’s shares have surged 225.4% year to date. Wave Life Sciences beat on earnings in two of the trailing four quarters andmissed the mark twice, delivering an average surprise of 20.37%. WVE is set to report third-quarter results on Nov. 12, before the opening bell.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Novavax, Inc. (NVAX): Free Stock Analysis Report WAVE Life Sciences Ltd. (WVE): Free Stock Analysis Report Legend Biotech Corporation Sponsored ADR (LEGN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks