Nektar Therapeutics Beats Up on Analysts Yet Again

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Nektar Therapeutics (NAS: NKTR) reported earnings May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Nektar Therapeutics beat expectations on revenues and missed expectations on earnings per share.

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


Gross margins shrank, operating margins grew, net margins grew.

Revenue details
Nektar Therapeutics logged revenue of $17.9 million. The six analysts polled by S&P Capital IQ predicted a top line of $16.5 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $11.3 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 -$0.34. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.33 per share. GAAP EPS were -$0.36 for Q1 versus -$0.33 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 51.5%, 1,960 basis points worse than the prior-year quarter. Operating margin was -202.0%, 9,770 basis points better than the prior-year quarter. Net margin was -229.0%, 8,990 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $19.4 million. On the bottom line, the average EPS estimate is -$0.33.

Next year's average estimate for revenue is $80.7 million. The average EPS estimate is -$1.45.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 192 members out of 220 rating the stock outperform, and 28 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Nektar Therapeutics a green thumbs-up, and 13 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 $11.00.

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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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