What to Look for in Novavax Earnings

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Novavax Inc. (NASDAQ: NVAX) is scheduled to report its third-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters are a net loss of $0.26 per share and $4.02 million in revenue. The same period of last year reportedly had a net loss of $0.26 per share and revenue of $6.53 million.

During this quarter, the company reported top-line results from its RSV F Vaccine trials and shareholders pummeled the stock. Essentially, the Resolve Phase 3 trial of RSV F Vaccine in 11,856 older adults (60 years of age and older), failed to meet the pre-specified primary or the secondary efficacy objectives and did not demonstrate vaccine efficacy.

RSV takes up a majority of the Novavax pipeline, with two of its indications in Phase 3. Novavax influenza treatment is the second closest to completion, with two of its vaccines in Phase 2. The remainder of the pipeline is still in Phase 1.

The primary objective of the Resolve trial was to demonstrate efficacy in the prevention of moderate-severe RSV-associated lower respiratory tract disease, as defined by the presence of multiple lower respiratory tract symptoms.

Prior to the release of the earnings report, a few analysts weighed in on Novavax:

  • FBR reiterated an Outperform rating with a $12 price target.
  • Chardan Capital has a Neutral rating with a $1.50 price target.
  • Citigroup has a Neutral rating with a $1.50 price target.
  • JPMorgan has a Neutral rating.
  • Piper Jaffray has a Neutral rating.
  • Wedbush has a Neutral rating.

So far in 2016, Novavax has underperformed the broad markets, with the stock down 82.5%.

Shares of Novavax were trading at $1.47 on Tuesday, with a consensus analyst price target of $5.02 and a 52-week trading range of $1.16 to $9.23.