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Why Is Nektar (NKTR) Down 51.9% 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 51.9% 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.

Q4 Earnings Beat Estimates, Revenues Meets

Nektar reported a loss of 32 cents per share for the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 45 cents and the year-ago quarter’s loss of 79 cents.

Quarterly revenues were down 12% year over year to $22 million during the quarter and in line with the Zacks Consensus Estimate.

Quarter in Detail

In the fourth quarter, product sales declined 25.6% from the year-ago quarter’s levels to $4.3 million. Non-cash royalty revenues were $17.6 million, down 7.6% from the year-ago quarter.

License, collaboration and other revenues were $0.01 million, down 57.5% from the year-ago quarter.

Research and development (R&D) expenses declined 65.1% to $34.7 million. General and administrative (G&A) expenses were down 31.8% year over year to $21.9 million. The drop in expenses was due to the discontinuation of the development of bempeg, in April 2022.

Cash and investments in marketable securities as of Dec 31, 2022, were $505 million compared with $546.4 million as of Sep 30, 2022.

2022 Results

Revenues for 2022 were down 9.6% year over year to $92.1 million.

The company incurred a loss of $1.97 per share, narrower than the previous year’s loss of $2.86 per share.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

The consensus estimate has shifted -14.97% due to these changes.

VGM Scores

At this time, Nektar has a subpar Growth Score of D, 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 bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Nektar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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