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