Novavax (NASDAQ:NVAX) stock is down 20% today despite the drug maker reporting its first profitable quarter.
Novavax reported net income of $203 million for the year’s first quarter, compared to a net loss of $222.7 million in the year-earlier period. The company also reiterated its 2022 revenue guidance of $4 billion to $5 billion for the entire year.
But despite swinging to a profit, Novavax’s results still fell short of Wall Street expectations, leading to the current selloff.
Before today’s big drop, Novavax stock had been down 63% year to date at $53.26 per share.
What Happened With NVAX Stock
Novavax announced that it earned $203 million, or $2.56 a share, in the first quarter, while its revenue in the period rose to $704 million from $447 million a year ago. However, the FactSet estimate called for Novavax to report earnings of $2.69 a share on revenue of $845 million.
Also, while Novavax said it has been “successful” in launching its Covid-19 vaccine worldwide, the company acknowledged that it still has not received an order from Covax. It is not clear when Covax could place an order, or how many doses it will order.
And, Novavax’s Covid-19 vaccine still has not been approved by the U.S. Food and Drug Administration (FDA). The company said it anticipates the FDA will authorize its vaccine for adults aged 18 and older sometime this summer, though FDA approval has been repeatedly delayed. Novavax said it has also submitted vaccine data on adolescents ages 12 to 17 to the FDA, and plans to submit additional data on booster shots.
Why It Matters
The missed earnings, combined with a lack of clarity on any Covax orders and FDA approval of its Covid-19 vaccine, has prompted today’s selloff in NVAX stock. This comes as other makers like Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) have beat Novavax to market.
Novavax says it has now received authorizations in 41 countries for its Covid-19 shot, and has shipped more than 42 million doses just this year. However, it’s unclear how much demand there will be for Novavax’s vaccine going forward.
What’s Next for Novavax
NVAX stock continues to plummet as the outlook for its Covid-19 vaccine remains uncertain. While the company has now turned a profit, that fact seems to have done little to inspire confidence in investors.
Until Novavax receives FDA approval to administer its vaccine in the U.S. or a large order for its shot from Covax, the share price is likely to keep sliding.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.