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Natera (NTRA) Beats Q1 Earnings Estimates, Sees Impressive Revenue Growth

By Don Francis, Editor
May 15, 2024 7:04 AM UTC
Natera (NTRA) Beats Q1 Earnings Estimates, Sees Impressive Revenue Growth

Piper Sandler's David Westenberg raised their price target on Natera (NASDAQ: NTRA) by 9.1% from $110 to $120 on 2024/05/14. The analyst maintained their Strong Buy rating on the stock.

Westenberg said that they hiked their price target after assessing Natera's Q1 2024 earnings, reported on 2024/05/09.

For Q1 2024, Natera reported a loss per share of $0.56, which beat the Zacks Consensus Estimate of $(0.72) and, by 54.5%, Q1 2023’s $(1.23). The company also reported revenue of $367.74M, surpassing the Zacks Consensus Estimate of $311.5M and, by 52.1%, Q1 2023’s $241.8M. Furthermore, Natera saw a significant improvement in gross margin, which stood at 56.7% compared to Q1 2023’s 38.7%.

In terms of expenses, Natera incurred SG&A (Selling, General, and Administrative) expenses of $194.28M and R&D (Research and Development) expenses of $88.64M during the first quarter of 2024. The company also reported a net cash flow of $3M.

Looking ahead, Natera's management guided for revenue of $1.42B to $1.45B for FY 2023, along with a gross margin of 53% to 55%. The company expects SG&A expenses to range from $700M to $750M and R&D expenses to range from $350M to $375M. Additionally, Natera anticipates a net cash inflow of $(25)M to $25M.

CEO Steve Chapman expressed satisfaction with the company's performance, stating, “We had an excellent start to the year, driving robust volume, revenue and margin growth and achieving cash flow breakeven earlier than expected." Chapman also highlighted Natera's efforts to transform disease management, including the launch of a highly differentiated product in women's health and the publication of practice-changing data in oncology and organ health.

The analyst rating for Natera remains overwhelmingly positive, with 100% of top-rated analysts currently rating the stock as either a Strong Buy or Buy. No analysts see it as a Hold, and none recommend selling the stock.

Since Natera's latest quarterly report on 2024/05/09, the stock price has risen by 10.4%. Year-over-year, the stock has experienced an impressive growth of 102.3%. During the same period, Natera has outpaced the S&P 500, which has risen by 26.8%.

Analyzing the performance of Piper Sandler analyst David Westenberg, WallStreetZen ranks them in the top 12% out of 4,585 Wall Street analysts. Westenberg specializes in the Financial Services and Healthcare sectors and boasts an average return of 11.3% and a win rate of 52.6%.

Natera, Inc., a diagnostics company based in Austin, Texas, develops and commercializes molecular testing services worldwide. The company offers a range of products, including Panorama, a non-invasive prenatal test, Vistara for single-gene mutations screening, Horizon carrier screening, and Spectrum for identifying chromosomal anomalies. Natera also provides Anora miscarriage test products and non-invasive paternity testing products. The company offers its products through direct sales and a network of laboratory and distribution partners.

Natera's strategic partnerships include agreements with BGI Genomics Co., Ltd. and Foundation Medicine, Inc., aimed at developing and commercializing genetic testing assays and circulating tumor DNA monitoring assays, respectively.

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