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BioNTech Earnings Miss Estimates, Revenue Drops 66% Amid Reduced Vaccine Demand

BioNTech's earnings drop to €458 million, missing estimates amid declining Covid vaccine demand, shares fall 5.7% premarket.

By Barry Stearns

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3/20, 08:09 EDT
BioNTech SE
Moderna, Inc.
Pfizer, Inc.
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Key Takeaway

  • BioNTech (BNTX) earnings at €458 million ($500 million), missing estimates with a 66% revenue drop to €1.5 billion.
  • Revised 2024 Covid-19 treatment revenue guidance to €4 billion, down from €5 billion, amid reduced vaccine demand.
  • BNTX ADRs fell 5.7% in premarket trading to $88.78, reflecting broader pharmaceutical sector challenges despite market optimism.

Earnings and Market Movements

BioNTech (BNTX) reported earnings of €458 million ($500 million), or €1.90 per share, falling short of the median estimate of €2.37 per share according to a FactSet survey. The company's revenue saw a 66% decrease to €1.5 billion, missing expectations, with guidance for 2024 also below consensus. This downturn is attributed to reduced demand for Covid vaccines post-pandemic, compounded by inventory write-downs previously indicated by Pfizer. Consequently, BioNTech's American depositary receipts dropped 5.7% in premarket trading to $88.78, marking a 30% decline over the past year. Despite these challenges, BioNTech is anticipated to remain profitable, having been listed among Barron’s 10 favorite stocks for 2024 in December.

Strategic Adjustments and Future Outlook

BioNTech revised its Covid-19 treatment revenue guidance for the year to €4 billion from €5 billion. This adjustment follows a less severe impact from vaccine write-downs than initially expected, with the company reducing third-quarter revenues by €508 million after Pfizer reported writedowns on their joint product, a significant decrease from the anticipated €900 million. This revision reflects BioNTech's strategic response to evolving market conditions and its efforts to mitigate financial impacts.

Pre-Market Activity and Sector Trends

In the broader market, S&P 500 futures edged up by 0.06% ahead of the Federal Reserve meeting, with Nasdaq 100 futures rising by 0.2%. This activity indicates a cautiously optimistic outlook among investors. However, BioNTech's ADRs fell by 5% following the earnings report, highlighting the challenges faced by the pharmaceutical sector. In contrast, companies like Intel (INTC) and Chipotle (CMG) experienced pre-market gains of 3% and 5%, respectively, driven by strategic growth initiatives and positive market reactions to corporate announcements such as stock splits and federal support for semiconductor factory expansions.