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.
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.
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 -$0.34. 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.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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.
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.
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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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.