Novavax (NVAX) Stock: Earnings Lead To Declines

Novavax, Inc. (NASDAQ: NVAX)

Novavax is having a rough day in the market today, and for good reason. The company reported its earnings for the first quarter, missing expectations and causing concerns among investors. Today, we’ll talk about what we saw from earnings, how the market is reacting to the news, and what we can expect to see from NVAX moving forward. So, let’s get right to it…

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NVAX Reports Earnings

As mentioned above, Novavax reported its earnings for the first quarter after the closing bell yesterday. Unfortunately, the company missed expectations, leading to declines in the value of the stock. Here’s what we saw from the earnings report:

  • Earnings – In terms of earnings per share, NVAX left much to be desired. During the first quarter, analysts expected that the company would generate a loss of $0.27 per share. However, the company actually reported a loss that was $0.02 per share worse than expected, coming in at $0.29 per share.
  • Revenue – While earnings missed expectations, the big story here was revenue. During the first quarter, analysts expected that NVAX would generate revenue in the amount of $10.39 million. However, the company announced that its revenue came in at less than half of what analysts were expecting to see. In the quarter, the company generated total revenue in the amount of $4.2 million.

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. On the other hand, when negative news is produced, we can expect to see declines. Unfortunately, the news surrounding Novavax definitely wasn’t positive. Not only did the company slightly miss earnings projections, revenue came in far below what analysts were expecting to see. As a result, we’re seeing declines on the stock during today’s trading session. Currently (10:50), NVAX is trading at $4.61 per share after a loss of $0.17 per share or 3.56% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from NVAX. In the short term, we’re likely to see more declines as disappointing quarterly results continue to be a cause for concern among investors. However, in the long run, I do believe that the company will likely pull ahead. The reality is that Novavax is working on incredible vaccines that are much needed in the medical industry. While these product candidates are still in the trial phase, they are looking incredibly promising, which I believe is why the declines realized on the stock today haven’t been larger. All in all, things look tough at the moment, but in the long run, I wouldn’t be surprised to see this stock soar.

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What Do You Think?

Where do you think NVAX is headed moving forward? Let us know your opinion in the comments below!

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