Should I buy Moderna shares after strong Q4 results?

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Moderna Inc. (NASDAQ: MRNA) shares advanced more than 15% after the company reported a quarterly report that blew away Wall Street analysts’ estimates.

The company’s management has authorized a new share repurchase program of $3 billion, and the fourth-quarter earnings results showed that Moderna is moving in the right direction.

The average selling price remained stable

Moderna reported strong fourth-quarter results this Thursday; total revenue has increased by 1162.7% Y/Y to $7.21 billion, $480 million above expectations, while the GAAP earnings per share were $11.29 (beats by $1.68).

Total product sales in the fourth quarter of 2021 were $6.9 billion compared to $4.8 billion in the third quarter. Moderna delivered  297 million doses to its customers during the fourth quarter, which represents an increase of more than 40% compared to the previous quarter.

Moderna recorded a net income of $4.9 billion in the fourth quarter compared to $3.3 billion in the third quarter, and the quarter-over-quarter improvement was driven by favorable manufacturing costs as the average selling price remained relatively stable.

The cost of sales was $952 million or 14% of the company’s product sales in the fourth quarter compared to $722 million or 15% of product sales in the third quarter.

The company’s results surpassed analysts’ consensus forecasts, and Moderna shares advanced more than 15% despite the fact that negative headlines out of Ukraine continue to dominate Wall Street.

Total revenue for the 2021 fiscal year reached $18.5 billion, while the GAAP net income was $12.2 billion. David Meline, CFO of Moderna, said:

The significant growth was driven by the sales of 807 million doses of the Company’s COVID-19 vaccine, resulting in product sales of $17.7 billion. The cost of sales was $2.6 billion, or 15% of the company’s product sales in 2021, including third-party royalties of $641 million.

Positive information is that Moderna announced a new booster candidate that combines an Omicron-specific vaccine with the firm’s standard COVID shot while the company’s management has authorized a new share repurchase program of $3 billion.

Technical analysis

Moderna shares advanced more than 15% after the company reported a strong quarterly report, and the current share price stands at $156.

Data source: tradingview.com

The important support levels are $140 and $120; $180 and $200 represent the current resistance levels. If the price jumps above $180, it will signal trading Moderna shares, and the next target could be around $200 resistance.

On the other side, if the price falls below $140 support, it would be a strong “sell” signal, and the next target could be around $120.

Summary

Moderna reported strong fourth-quarter results this Thursday, and the company’s management has authorized a new share repurchase program of $3 billion. The company’s results surpassed analysts’ consensus forecasts, and Moderna shares advanced more than 15% despite the fact that negative headlines out of Ukraine continue to dominate Wall Street.

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