Moderna (NASDAQ: MRNA) stock significantly surged on February 22 after the company surpassed Wall Street’s quarterly expectations.
Moderna reported $0.55 per share in the December quarter, which contradicted expectations for a loss of $0.99 per share. Furthermore, the company disclosed sales amounting to $2.8 billion, surpassing forecasts of $2.51 billion.
Moderna’s recent earnings surprise, partly attributed to $600 million in deferred revenue, reflects its commitment to expense reduction. With 2024 poised as a “year of execution,” the company plans to continue cost-cutting measures, launch an RSV vaccine, and surpass financial expectations.
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Post-Covid treatment developments from Moderna
Moderna will introduce its respiratory syncytial virus (RSV) vaccine tailored for older adults in the upcoming year.
Moderna’s entry into this market follows Pfizer’s (NYSE: PFE) and GSK’s (NYSE: GSK) launch of similar products in 2023. Pfizer’s Abrysvo yielded $890 million in sales last year, while GSK’s Arexvy amassed approximately $1.56 billion.
Moderna aims to secure approval for its messenger RNA-based alternative within the year’s initial half. Analysts assessing Moderna’s stock forecast approximately $321 million in vaccine sales for the company in the current year.
Moderna’s vaccine utilizes a pre-filled syringe, potentially positioning it to capture market share from competitors Abrysvo and Arexvy.
Technical analysis of Moderna stock price
The surpassing of analysts’ expectations and the announcement of further distribution of new treatments have propelled MRNA stock to a 13% increase within a single day.
This surge enabled its price to break out of a descending parallel channel and surpass its 50-day simple moving average.
MRNA is currently trading midway within its 52-week range, indicating relative stability. However, compared to the S&P 500 Index, which is nearing record highs, MRNA’s performance is lagging.
Over the past month, MRNA has exhibited considerable volatility, with a trading range spanning from $84.06 to $105.81. Presently positioned in the middle of this range, potential resistance may be encountered at higher levels.
Notably, support is identified within the $86.86 to $87.41 range, while resistance is observed between $99.45 and $99.72, marked by intersecting trend lines across multiple time frames.
Whether these developments will sustain MRNA stock’s upward momentum and prompt analysts to revise their expectations for the company remains uncertain. Nonetheless, the recent positive news has proven to be a pleasant surprise for those who placed their trust in this pharmaceutical stock.
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