Valneva (NASDAQ:VALN) Announces Earnings Results

Valneva (NASDAQ:VALN) posted its earnings results on Wednesday. The company reported ($0.42) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.21), Zacks reports. Valneva had a negative return on equity of 76.81% and a negative net margin of 67.64%.

Here are the key takeaways from Valneva’s conference call:

• Valneva said the Lyme vaccine missed one pre-specified statistical criterion, although the second criterion was met and Pfizer still plans regulatory submissions. The company emphasized the readout was limited by fewer-than-expected Lyme cases, which widened confidence intervals.
• The company reported more than EUR 100 million in cash at quarter-end excluding recent financing proceeds, and it launched a restructuring aimed at cutting operating expenses by 25%–35% versus last year. Valneva also expects a 10%–15% workforce reduction.
• Q1 product sales fell to EUR 30.5 million from EUR 48.6 million a year ago, driven by lower IXIARO, DUKORAL, and IXCHIQ sales as well as a sharp drop in third-party product revenue. The company also cut full-year 2026 guidance to EUR 135 million–EUR 150 million in product sales and EUR 145 million–EUR 160 million in total revenues.
• Management said Q1 gross margin was hurt by manufacturing transfer costs, idle capacity, batch write-offs, and onerous contract charges, particularly for IXCHIQ. They expect margin to normalize later in the year, but also noted idle capacity costs remain elevated after the move to the Almeida facility.
• Valneva highlighted continued progress across its pipeline, including IXCHIQ rollout in Brazil, where more than 30,000 people have already been vaccinated, and upcoming Shigella data readouts expected over the summer. Management also reiterated that Pfizer is preparing regulatory meetings for Lyme and will present the full dataset at a future conference.

Valneva Stock Performance

NASDAQ:VALN traded down $0.10 during mid-day trading on Wednesday, hitting $5.90. The company’s stock had a trading volume of 28,315 shares, compared to its average volume of 65,575. Valneva has a 1 year low of $5.06 and a 1 year high of $12.25. The company has a debt-to-equity ratio of 1.52, a current ratio of 2.38 and a quick ratio of 1.85. The stock has a market cap of $508.05 million, a price-to-earnings ratio of -3.73 and a beta of 1.72. The business’s fifty day moving average is $7.38 and its two-hundred day moving average is $8.66.

Institutional Investors Weigh In On Valneva

Hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. purchased a new stake in shares of Valneva during the 3rd quarter worth about $124,000. XTX Topco Ltd purchased a new stake in shares of Valneva during the 4th quarter worth about $94,000. Finally, Marex Group plc purchased a new stake in shares of Valneva during the 2nd quarter worth about $64,000. 11.39% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on VALN. The Goldman Sachs Group lowered Valneva from a “neutral” rating to a “sell” rating and set a $4.90 target price for the company. in a report on Wednesday, April 22nd. Guggenheim set a $11.00 price target on Valneva in a research report on Thursday, April 16th. Finally, Wall Street Zen downgraded Valneva to a “strong sell” rating in a research report on Saturday, April 25th. Three analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $11.98.

About Valneva

Valneva SE is a specialty vaccine company focused on the development and commercialization of prophylactic vaccines for infectious diseases. Headquartered in Saint-Herblain, France, the company applies inactivated whole-cell and recombinant technology platforms to address public health needs. Valneva’s research and development efforts span a range of viral and bacterial pathogens, with an emphasis on travel-related and emerging infectious diseases.

Among its marketed products, Valneva offers IXIARO®/JESPECT® for the prevention of Japanese encephalitis and DUKORAL® for the prevention of cholera and diarrhea caused by enterotoxigenic Escherichia coli.