Why Novavax Stock Is Down By 19% Today

Novavax Misses Analyst Estimates, Announces New Delays

Novavax stock found itself under huge pressure after the company reported its quarterly results. Novavax reported revenue of $298 million and GAAP loss of $4.75 per share, missing analyst estimates on both earnings and revenue.

The earnings miss was not the company’s main problem. Novavax stated that it planned to submit for the emergency use authorization of its coronavirus vaccine in the U.S. in the fourth quarter of this year. Previously, Novavax planned to do this in the third quarter. In addition, Novavax noted that U.S. government will pause funding for additional U.S. manufacturing.

What’s Next For Novavax Stock?

The market will not focus on the company’s financial report at a time when Novavax announced that its vaccine would not be submitted for emergency use authorization until the fourth quarter.

Novavax continues to suffer from delays while its competitors like Pfizer and Moderna are gaining market share and making new deals.

Analysts expect that the company will report earnings of $35.19 per share in 2022, so the stock is trading at less than 6 forward P/E. At first glance, Novavax looks extremely cheap.

However, traders should keep in mind that these estimates may be quickly revised to the downside as the company fails to live up to previous expectations.

Novavax shares benefited from general market optimism which was driven by success of fellow vaccine makers. In fact, the company’s stock rallied ahead of the second-quarter report together with Pfizer and Moderna.

The key question right now is whether the market will choose to focus on Novavax’ problems or the stock will remain a part of the big “vaccine trade”. If traders begin to worry about the reasons of another delay in the U.S., Novavax shares may easily get to the test of May lows below the $120 level.

For a look at all of today’s economic events, check out our economic calendar.