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Nektar (NKTR) Up 7.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Nektar Therapeutics (NKTR - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nektar due for a pullback? 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 drivers.
Nektar Q4 Loss Wider Than Expected, Revenues Beat
Nektar reported an adjusted loss of 22 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the year-ago quarter, the company had incurred a loss of 32 cents per share.
Total revenues increased 8.5% year over year to $23.9 million during the fourth quarter. Revenues beat the Zacks Consensus Estimate of $17 million.
Quarter in Details
In the fourth quarter, product sales increased around 25.2% from the year-ago quarter’s levels to $5.5 million.
Non-cash royalty revenues were $18.1 million, up 2.5% from the year-ago quarter. Non-cash royalty revenues were better than our model estimate of $15 million.
License, collaboration and other revenues were $0.3 million in the reported quarter compared with $0.01 million reported in the year-ago quarter.
Research and development (R&D) expenses declined 13.8% to $29.9 million due to the winding down of the development of bempegaldesleukin (bempeg). NKTR stopped all clinical studies on bempeg in April 2022.
General and administrative (G&A) expenses declined 21% year over year to $17.3 million due to the discontinuation of the development of bempeg.
Cash and investments in marketable securities, as of Dec 31, 2023, were $329.4 million compared with $372.7 million as of Sep 30.
2024 Guidance
Nektar expects revenues in the range of $75-$85 million in 2024, which includes $55-$65 million in non-cash royalties and $20-$25 million in product sales.
R&D costs are expected to be between $120 million and $130 million. G&A costs are anticipated to be between $70 million and $75 million. Nektar expects to end 2024 with $200-$225 million in cash and investments, which are likely to extend the cash runaway through the third quarter of 2026.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.45% due to these changes.
VGM Scores
At this time, Nektar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Nektar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nektar is part of the Zacks Medical - Drugs industry. Over the past month, Theravance Biopharma (TBPH - Free Report) , a stock from the same industry, has gained 5%. The company reported its results for the quarter ended December 2023 more than a month ago.
Theravance Bio reported revenues of $17.57 million in the last reported quarter, representing a year-over-year change of +19.9%. EPS of $0.03 for the same period compares with -$0.21 a year ago.
For the current quarter, Theravance Bio is expected to post a loss of $0.19 per share, indicating a change of +20.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -10.1% over the last 30 days.
Theravance Bio has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Nektar (NKTR) Up 7.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Nektar Therapeutics (NKTR - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nektar due for a pullback? 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 drivers.
Nektar Q4 Loss Wider Than Expected, Revenues Beat
Nektar reported an adjusted loss of 22 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 20 cents. In the year-ago quarter, the company had incurred a loss of 32 cents per share.
Total revenues increased 8.5% year over year to $23.9 million during the fourth quarter. Revenues beat the Zacks Consensus Estimate of $17 million.
Quarter in Details
In the fourth quarter, product sales increased around 25.2% from the year-ago quarter’s levels to $5.5 million.
Non-cash royalty revenues were $18.1 million, up 2.5% from the year-ago quarter. Non-cash royalty revenues were better than our model estimate of $15 million.
License, collaboration and other revenues were $0.3 million in the reported quarter compared with $0.01 million reported in the year-ago quarter.
Research and development (R&D) expenses declined 13.8% to $29.9 million due to the winding down of the development of bempegaldesleukin (bempeg). NKTR stopped all clinical studies on bempeg in April 2022.
General and administrative (G&A) expenses declined 21% year over year to $17.3 million due to the discontinuation of the development of bempeg.
Cash and investments in marketable securities, as of Dec 31, 2023, were $329.4 million compared with $372.7 million as of Sep 30.
2024 Guidance
Nektar expects revenues in the range of $75-$85 million in 2024, which includes $55-$65 million in non-cash royalties and $20-$25 million in product sales.
R&D costs are expected to be between $120 million and $130 million. G&A costs are anticipated to be between $70 million and $75 million. Nektar expects to end 2024 with $200-$225 million in cash and investments, which are likely to extend the cash runaway through the third quarter of 2026.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -22.45% due to these changes.
VGM Scores
At this time, Nektar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Nektar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nektar is part of the Zacks Medical - Drugs industry. Over the past month, Theravance Biopharma (TBPH - Free Report) , a stock from the same industry, has gained 5%. The company reported its results for the quarter ended December 2023 more than a month ago.
Theravance Bio reported revenues of $17.57 million in the last reported quarter, representing a year-over-year change of +19.9%. EPS of $0.03 for the same period compares with -$0.21 a year ago.
For the current quarter, Theravance Bio is expected to post a loss of $0.19 per share, indicating a change of +20.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -10.1% over the last 30 days.
Theravance Bio has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.