Nektar Therapeutics Catches Analysts Sleeping Again

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Nektar Therapeutics (NAS: NKTR) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nektar Therapeutics crushed expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share expanded.

Margins contracted across the board.

Revenue details
Nektar Therapeutics chalked up revenue of $15.8 million. The seven analysts polled by S&P Capital IQ looked for revenue of $12.4 million on the same basis. GAAP reported sales were 65% lower than the prior-year quarter's $45.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.33. The six earnings estimates compiled by S&P Capital IQ averaged -$0.47 per share. GAAP EPS were -$0.33 for Q4 versus -$0.24 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 65.5%, 1,190 basis points worse than the prior-year quarter. Operating margin was -218.4%, 20,080 basis points worse than the prior-year quarter. Net margin was -237.6%, 18,780 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $14.6 million. On the bottom line, the average EPS estimate is -$0.32.

Next year's average estimate for revenue is $80.1 million. The average EPS estimate is -$1.30.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 197 members out of 226 rating the stock outperform, and 29 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Nektar Therapeutics a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nektar Therapeutics is outperform, with an average price target of $10.67.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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