Moderna recently experienced a significant boost in its third-quarter performance, driven by the earlier approval of its updated COVID-19 vaccine in the US. This approval not only underpinned sales growth but also contributed to an unexpected net income for the pharmaceutical company. Earnings for the three months ending September 30 were reported at $0.03 per share, a considerable improvement from last year's loss of $9.53 per share.
This result surpassed the expectations outlined by Capital IQ, which predicted a loss of $1.93. Furthermore, revenue climbed to $1.82 billion, surpassing market expectations that had anticipated $1.25 billion in revenue. 'While our (third-quarter) results exceeded expectations, this was mainly due to sales timing between the third and fourth quarter, supported by receiving FDA approval of our updated COVID-19 vaccine, three weeks earlier than last year,' stated Chief Financial Officer Jamey Mock during a conference call with analysts, referencing the role of the US Food and Drug Administration. In terms of product sales, the majority—$1.2 billion—originated from the US market in the third quarter, while international sales contributed an additional $600 million. Moderna has maintained its product sales guidance for 2024, estimating earnings between $3 billion to $3.5 billion.
Mock indicated that this estimate suggests a fourth-quarter revenue range of $800 million to $1.3 billion. For the current three months, projected US product sales are estimated to be between $200 million and $500 million, with international sales anticipated to range from $600 million to $800 million, as detailed in a Capital IQ transcript. The quarterly results were further enhanced by Moderna's strategic cost-reduction initiatives, which led to a remarkable 77% decrease in the cost of sales to $514 million.
This reduction was attributed to a combination of lowered inventory write-downs, unused manufacturing capacity, and productivity gains. The company indicated that for the full year of 2024, the cost of sales is projected to be between 40% to 45% of product sales, narrowed from a previous forecast of 40% to 50%.
In the most recent quarter, this rate was reported at 28%, significantly reduced from 128% a year prior. In terms of expenditures, research and development costs saw a slight decline of 2%, rounding out at $1.1 billion, while selling, general, and administrative (SG&A) costs demonstrated a notable reduction of 36%, totaling $281 million.
Mock emphasized that the decrease in SG&A expenses reflects a strong commitment to enhancing cost efficiency and making strategic investments that bolster overall productivity. Price: 53.20, Change: +1.39, Percent Change: +2.68..