The 10-second takeaway
For the quarter ended June 30 (Q2), Nektar Therapeutics beat expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share shrank.
Margins grew across the board.
Nektar Therapeutics chalked up revenue of $23.7 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $20.1 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $17.3 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 -$0.30. The five earnings estimates compiled by S&P Capital IQ predicted -$0.33 per share. GAAP EPS were -$0.30 for Q2 compared to -$0.32 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 69.6%, 1,660 basis points better than the prior-year quarter. Operating margin was -114.0%, 8,370 basis points better than the prior-year quarter. Net margin was -144.8%, 6,510 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $21.3 million. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $87.1 million. The average EPS estimate is -$1.47.
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 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Nektar Therapeutics a green thumbs-up, and 11 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 $10.88.
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