Novavax (NASDAQ:NVAX) stock is dropping on Wednesday after the vaccine company warned investors about the state of its business.
In its latest earnings report, Novavax notes a few concerns that investors should know about. That includes the company being unsure about its revenue for 2023. The company also brings up funding from the U.S. government and pending arbitration as other worries.
Alongside this warning, Novavax claims it has enough cash to ensure operations for another year. However, the company is cutting costs to operate more efficiently as it prepares for the fall flu season.
John Jacobs, President and CEO of Novavax, said the following in its earnings report:
“Over the past few weeks, the management team and I have identified three near-term priorities that we believe are essential to our success this year and beyond: 1) to deliver a competitive product for the upcoming 2023 fall vaccination season; 2) to reduce our rate of spend, manage our cash flow, and evolve our scale and structure; and 3) to leverage our technology platform, our capabilities and our portfolio of assets to drive additional value beyond Nuvaxovid alone.”
NVAX Earnings Hit Stock Hard
On top of these concerns, Novavax’s earnings report didn’t help with its earnings per share of -$2.28 on revenue of $357 million. Both of these figures are worse than Wall Street’s estimates for -92 cents per share alongside revenue of $383 million.
NVAX stock is down 26.3% in pre-market trading on Wednesday!
Investors seeking more of the latest stock market news will want to stick around!
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On the date of publication, William White did not hold (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.