BioNTech Q1 Sales & EPS Grow 3x; Shares Up 3.1%

BioNTech (NASDAQ: BNTX) reported stronger-than-expected Q1 results, significantly topping both earnings and revenue estimates, driven by robust coronavirus vaccine sales.

Shares of the German biotechnology company gained 3.1% on May 9 to close at $140.32.

Q1 Beat

Notably, adjusted earnings of €14.24 per share more than trebled year-over-year and massively beat analysts’ expectations of €8.62 per share. The company reported earnings of €4.39 per share for the prior-year period.

Furthermore, revenues also more than trebled year-over-year to €6.37 billion and exceeded consensus estimates of €4.01 billion.

The increase in revenues reflects a surge in commercial revenues driven by the supply and sales of the company’s COVID-19 vaccine worldwide.

FY2022 Outlook

Based on robust Q1 results, management reiterated the financial guidance for FY2022.

The company continues to forecast coronavirus vaccine revenue in the range of €13 billion to €17 billion, while the consensus estimate is pegged at €15.62 billion.

Capital expenditure is forecast to be in the range of €450 million to €550 million, versus the consensus estimate of €390.3 million.

CEO’s Comments

BioNTech CEO, Ugur Sahin, commented, “We have enhanced our COVID-19 vaccine leadership and reported encouraging data for our first-in-human CAR-T therapy in solid tumors. Driven by our execution in innovation, we believe we are well positioned to achieve multiple product launches in the coming years, which would facilitate significant long-term growth.”

Wall Street’s Take

Following Q1 results, Morgan Stanley analyst Matthew Harrison decreased the price target on BioNTec to $195 (38.97% upside potential) from $197 and reiterated a Hold rating.

The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on three Buys and six Holds. The average BioNTech SE stock forecast of $251.67 implies 79.35% upside potential to current levels.

Conclusion

BioNTech delivered outstanding Q1 sales and earnings beat driven by robust demand for the COVID-19 vaccine it developed with Pfizer (PFE).

However, it did not raise its full-year outlook and forecasts a year-over-year decline in 2022 vaccine revenue compared to €19 billion recorded last year.

This could indicate signs of waning demand for more vaccine shots as most of the population in North America and Europe have completed their three-shot course.

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