11:07 AM EST, 11/07/2024 (MT Newswires) -- Moderna ( MRNA ) got a boost in the third quarter from an earlier US approval of its updated COVID-19 vaccine, underpinning sales growth and helping drive a surprise net income result at the drugmaker.

Earnings on a GAAP basis came in at $0.03 a share for the three months through Sept. 30, compared with last year's loss of $9.53 and better than the consensus on Capital IQ for a loss of $1.93. Revenue rose to $1.82 billion from $1.76 billion, also ahead of the Street's view, which was for $1.25 billion.

"While our (third-quarter) results exceeded expectations, this was mainly due to sales timing between the third and fourth quarter, supported by receiving FDA approval of our updated COVID-19 vaccine, three weeks earlier than last year," Chief Financial Officer Jamey Mock said on a conference call with analysts, referring to the US Food and Drug Administration.

The bulk of Moderna's ( MRNA ) product sales -- $1.2 billion -- came from the US market in the third quarter, while international sales were $600 million.

Moderna ( MRNA ) affirmed its 2024 product sales guidance of $3 billion to $3.5 billion, which Mock said implies a range of $800 million to $1.3 billion for the fourth quarter. US product sales for the current three months are pegged between $200 million and $500 million, with international ranging from $600 million to $800 million, the CFO said, according to a Capital IQ transcript.

The quarterly results also benefitted from the Spikevax maker's cost-reduction moves, with cost of sales plunging 77% to $514 million due to "reductions in inventory write-downs and unutilized manufacturing capacity, and productivity improvements," the company said in a statement.

For full-year 2024, cost of sales is expected to be in a range of 40% to 45% of product sales, narrowed from the prior outlook for 40% to 50%. In the most recent quarter, the rate came in at 28%, well below the year earlier 128%.

Research and development expenses fell 2% to $1.1 billion while selling, general and administrative costs slid 36% to $281 million. The decline in SG&A expenses "reflects our focus on driving cost efficiency and making targeted investments that continue to strengthen our overall productivity," Mock told analysts.

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