Novavax Earnings Call Reveals Surprise Profit, But Stocks Still Slide

Key takeaways

• Novavax surprised on the upside with profit, but the company’s hopes are pinned on FDA approval of its new Covid vaccine for this fall
• The biotech company downgraded its full-year revenue forecast
• Novava shares declined 3.8% on Tuesday and have lost 82% of their value in 12 months

Can the pandemic hero companies find life after Covid? That’s the main question investors are asking as the pharmaceuticals continue to convince on that front. Novavax was the latest to post earnings, which unveiled a surprise profit but not much to go on for revenue in the third quarter, as well as cutting its full-year guidance.

It’s not the only vaccine producer struggling to get by, but Novavax looked terminal earlier this year by its own admission. There are signs of life in the form of new cash flow and a South Korean company taking a stake in Novavax, but the shares closing down on Tuesday suggests Wall Street isn’t yet sold on the company’s long-term future.