BioNTech crushed Wall Street's profit expectations on Monday, but BNTX stock dipped at the close amid expectations for a continued decline in Covid vaccine sales.
During the first quarter, BioNTech earned an estimated $2.26 per share, minus some items. That's based on today's exchange rate. On a year-over-year basis, earnings plummeted 85% but still handily beat calls for 29 cents.
Sales also collapsed 79% to roughly $1.41 billion. But analysts polled by FactSet expected a lower $1.24 billion.
On today's stock market, BNTX stock dipped 0.4% and closed at 108.05.
BNTX Stock: Lower Boosting Levels Expected
The Pfizer-partnered Covid shot is BioNTech's only commercial product. BioNTech's sales peaked at $7.05 billion in the third quarter of 2021, but have since slowed dramatically. For the year, BioNTech affirmed it expects about $5.51 billion in sales.
Pfizer and BioNTech hope to launch an updated Covid booster shot in the fall. Fellow Covid vaccine companies Moderna and Novavax plan to do the same. But it won't be enough to fully offset what BioNTech expects to be a 73% drop-off in sales this year.
"While a vaccine adaptation is expected to lead to increased demand, fewer primary vaccinations and lowered population-wide levels of boosting are anticipated," BioNTech said in its news release.
BioNTech is also renegotiating its existing supply contract with the European Commission. The company expects seasonal demand to significantly boost sales in the second half of the year.
What's Next For BioNTech?
BNTX stock analysts are now watching for what's next from the German biotech.
"Importantly, BioNTech's cash and equivalents totaled (about $13.4 billion) at the end of the first quarter, providing the company with a considerable war chest to pursue opportunities that will drive future growth," Third Bridge analyst Lee Brown said in a note to clients. Third Bridge is a research firm.
BioNTech is working on treatments for cancer. It also has new a partnership with DualityBio to work on precision medicine approaches to cancer.
Still, BNTX stock remains under pressure. Shares touched a recent high in December, but have tumbled close to 43% in the five months since.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
