Genetic testing company Natera (NASDAQ: NTRA). will be announcing earnings results tomorrow after market close. Here’s what to look for.
Natera beat analysts’ revenue expectations by 21.5% last quarter, reporting revenues of $439.8 million, up 63.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ sales volume and EPS estimates.
Is Natera a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Natera’s revenue to grow 39.3% year on year to $433.4 million, slowing from the 43.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Natera has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 11.1% on average.
Looking at Natera’s peers in the immuno-oncology segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Exact Sciences delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 1.6%, and Regeneron reported revenues up 10.3%, topping estimates by 1%. Exact Sciences traded down 1.9% following the results while Regeneron was up 7.7%.
Read our full analysis of Exact Sciences’s results here and Regeneron’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the immuno-oncology stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Natera is down 6% during the same time and is heading into earnings with an average analyst price target of $180.68 (compared to the current share price of $158.07).
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