NVAX Stock: The Moment to Watch When Novavax Reports

Novavax (NVAX) faces a pivotal moment late Tuesday as NVAX stock investors watch to see if the Covid vaccine maker can turn around and post a third-quarter profit.




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Analysts are currently forecasting that Novavax earned $1.57 per share on $586 million in sales. Profits will reverse from a decline earlier. Sales will more than triple on an annual basis. But in the second quarter the company had an unexpected loss per share that rocked NVAX stock.

Demand for the Covid vaccine remains key. Novavax comes from behind. Today, the Covid vaccine is available to children as young as 12 years old in the US. The Food and Drug Administration first signed off on the protein-based vaccine in July. To date, less than 44,000 people have received it.

A boost in demand could fuel NVAX stock.

NVAX Stock: Competitive Updated Boosters

In addition to approval for the initial Covid vaccine, Novavax’s booster also won the FDA’s blessing in October. But the booster vaccine is only available to people who have not received another booster from Pfizer (PFE), Modern (mRNA) or Johnson & Johnson (JNJ).

Here it is important to note that Pfizer and Moderna have released updated Covid enhancers targeting the BA.4 and BA.5 subvariants of omicron. In the US, the latter remains marginally dominant, leading the newer strains BQ.1 and BQ.1.1.

The Novavax booster is a third dose of the original vaccine, which targets the ancestral strain of the virus. This is a bearish point for NVAX stock. In this month’s IBD/TIPP poll, less than a third of respondents said they would seek out the Novavax booster. Another 42% said they would not, while 19% are not eligible.

The company is also working on a prototype booster vaccine that elicited immune responses against the original strain, as well as the BA.1 and BA.5 subvariants. However, the BA.1 strain is no longer available in the US.

Investors in NVAX stock will likely look for comments on the company’s strengthening efforts when Novavax reports third-quarter earnings late Tuesday.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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