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Why Is Nektar (NKTR) Down 47.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Nektar Therapeutics (NKTR - Free Report) . Shares have lost about 47.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nektar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Nektar Q4 Earnings Top, Revenues Miss
Nektar reported a loss of 79 cents per share for the fourth quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 81 cents but wider than the year-ago loss of 65 cents.
Quarterly revenues were up 6.4% year over year to $25 million during the quarter, slightly missing the Zacks Consensus Estimate of $25.2 million.
Quarter in Detail
In the fourth quarter, product sales increased 104% from the year-ago period to $5.9 million. Non-cash royalty revenues were $19.1 million in the quarter, down 7.2% from the year-ago quarter.
License, collaboration and other revenues were $40,000 in the quarter compared with $0.4 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses decreased 3% to $99.6 million. General and administrative (G&A) expenses were up 18.4% year over year to $32.1 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin or bempeg.
Full-Year Results
Nektar reported revenues of $101.9 million, down 33.4% year over year. The company incurred a loss of $2.86 per share for 2021, 14.9% wider than the year-ago period.
2022 Guidance
Nektar issued guidance for revenues and operating expenses for 2022. In terms of revenues, the company currently assumes that it will receive milestone payments related only to regulatory filings for bempeg expected later this.
Nektar expects its total revenues to be between $185 million and $195 million in 2022. This includes an anticipated $100 million milestone payment from Bristol-Myers related to bempeg regulatory filings. The company anticipates $70 million of the milestone payment to be recorded in the third quarter of 2022 and the rest $30 million in the fourth quarter. The company anticipates $70 million to $75 million in non-cash royalty revenues and $15 million to $20 million in product sales.
The company expects R&D expense to be $500-$525 million and G&A expense in the range of $175 million to $195 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Nektar has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Nektar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Nektar (NKTR) Down 47.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Nektar Therapeutics (NKTR - Free Report) . Shares have lost about 47.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nektar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Nektar Q4 Earnings Top, Revenues Miss
Nektar reported a loss of 79 cents per share for the fourth quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 81 cents but wider than the year-ago loss of 65 cents.
Quarterly revenues were up 6.4% year over year to $25 million during the quarter, slightly missing the Zacks Consensus Estimate of $25.2 million.
Quarter in Detail
In the fourth quarter, product sales increased 104% from the year-ago period to $5.9 million. Non-cash royalty revenues were $19.1 million in the quarter, down 7.2% from the year-ago quarter.
License, collaboration and other revenues were $40,000 in the quarter compared with $0.4 million in the year-ago quarter.
The company did not record any Royalty revenues during the quarter as the company sold its rights to receive sales-based royalties for five partnered drugs last year.
Research and development (R&D) expenses decreased 3% to $99.6 million. General and administrative (G&A) expenses were up 18.4% year over year to $32.1 million in the reported quarter. The increase in G&A expenses was led by costs to support pre-commercialization activities related to bempegaldesleukin or bempeg.
Full-Year Results
Nektar reported revenues of $101.9 million, down 33.4% year over year. The company incurred a loss of $2.86 per share for 2021, 14.9% wider than the year-ago period.
2022 Guidance
Nektar issued guidance for revenues and operating expenses for 2022. In terms of revenues, the company currently assumes that it will receive milestone payments related only to regulatory filings for bempeg expected later this.
Nektar expects its total revenues to be between $185 million and $195 million in 2022. This includes an anticipated $100 million milestone payment from Bristol-Myers related to bempeg regulatory filings. The company anticipates $70 million of the milestone payment to be recorded in the third quarter of 2022 and the rest $30 million in the fourth quarter. The company anticipates $70 million to $75 million in non-cash royalty revenues and $15 million to $20 million in product sales.
The company expects R&D expense to be $500-$525 million and G&A expense in the range of $175 million to $195 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Nektar has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Nektar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.