Natera Stock Plummets After Mixed Q3 Financials

Benzinga Earnings11-07

Natera Inc. (NASDAQ:NTRA) shares are plunging Friday after reporting mixed third-quarter results, with revenue and guidance beating estimates while the loss per share came in wider than analysts expected. Here’s what you should know.

  • Natera stock is taking a hit today. What’s behind NTRA decline?

Natera Stock Falls After Mixed Third-Quarter Results

Natera shares are slipping after the genetic testing company delivered a sales beat and an earnings miss. Revenue came in at $793.98 million, topping the $704.90 million forecast by a wide margin and growing 34.08% over the prior-year quarter. The loss of 42 cents a share fell short of expectations, since analysts projected a 29-cent loss, though it narrowed from 64 cents a year ago.

Natera raised its 2026 revenue outlook as well. It now expects between approximately $3.01 billion and $3.04 billion, replacing a range of $2.85 billion to $2.91 billion. The new $3.02 billion midpoint sits about 4% above the roughly $2.91 billion analysts had estimated, and it adds $140 million to the old midpoint. Natera credited the gain to higher test volumes and better average selling prices.

The company also announced a leadership change. Solomon Moshkevich becomes CEO, starting right away.

Natera Highlights Test Volume and Oncology Growth

Natera ran about 1.09 million tests during the quarter, which is 22.3% more than the roughly 893,600 a year earlier. Oncology testing expanded even faster, at about 339,500 tests versus about 211,000 a year ago, a 60.9% gain. Clinical tests that look for leftover cancer, known as MRD, gained 32,700 more units than in the second quarter.

Setting aside one-time revenue adjustments, gross margin rose 1.37 percentage points from the previous quarter, and Natera finished September with roughly $1.1 billion in cash. For the full year, it expects to spend around $1.23 billion up to $1.3 billion on overhead and between $825 million and $925 million on research, and to generate positive cash flow.

NTRA Shares Are Sinking

NTRA Price Action: Natera shares were down 15.49% at $307.41 at the time of publication on Friday, according to Benzinga Pro.

Read Also: VIX Spikes Nearly 70%: History Says S&P 500 Usually Bounces Within a Month

Image: Michael Vi/Shutterstock

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment