COVID-19 Vaccine Maker Novavax Swings To Profit As Sales Climb

Core Viewpoint - Novavax Inc. reported a significant improvement in its financial performance for the fourth quarter and full year of 2025, with shares rising following the announcement [1]. Financial Performance - The company reported fourth-quarter earnings of 11 cents, a notable recovery from a loss of 51 cents in the same quarter last year [2]. - Revenue for the fourth quarter reached $147 million, reflecting a 67% year-over-year increase [2]. Cost Management - Novavax exceeded its 2025 cost-cutting targets for both GAAP and Non-GAAP R&D and SG&A spending, and is tightening future expense goals [2]. - The company now anticipates Non-GAAP R&D and SG&A expenses of $325 million in 2026, $225 million in 2027, and $200 million or less in 2028 [3]. Management Commentary - The President and CEO of Novavax highlighted significant progress in corporate strategy, including achievements under the Sanofi agreement and advancements in R&D efforts [4]. Revenue Guidance - Novavax provided a revenue forecast for 2026, projecting adjusted total revenue between $230 million and $270 million, which is below the consensus estimate of $381.22 million [5]. - The company expects Nuvaxovid product sales to be between $35 million and $45 million, along with adjusted supply sales of $40 million to $50 million [5]. Technical Analysis - The stock is currently trading 8.4% above its 20-day simple moving average (SMA) and 9.2% above its 100-day SMA, indicating short-term strength [6]. - Over the past 12 months, shares have shown significant growth and are closer to their 52-week highs, reflecting a strong upward trend [6]. Momentum Indicators - The RSI is at 44.45, indicating neutral territory, suggesting the stock is neither overbought nor oversold [7]. - The absence of significant MACD crossovers indicates a stable trend without immediate bullish or bearish pressure [7]. Analyst Consensus - The stock carries a Hold Rating with an average price target of $32.23 [8]. - Recent analyst actions include a Buy rating from BTIG with a target of $19.00, while JP Morgan has an Underweight rating with a lowered target of $6.00 [8].