Natera IncNTRA
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Q2 revenue beat estimates and EPS loss narrower than expected, with improved operating margin.
Impact on stocks 1
Biotech & Genomic Medicine
Natera IncNatera reported second-quarter revenue of $752.8 million, beating analyst estimates of $662.6 million and growing 37.7% year over year. Adjusted EPS came in at a loss of $0.47 per share, better than the expected loss of $0.53, while operating margin improved to negative 10.1% from negative 20.2% a year earlier. Sales volumes rose 22.4% year over year, driven by record Signatera oncology test volumes and the launch of an enhanced Panorama prenatal test. Management cited FDA and Japanese regulatory approvals for Signatera as key contributors to clinical adoption, and gross margins improved on higher average selling prices and scaling of new products. On the earnings call, analysts questioned the sustainability of Signatera growth, pricing trends, competitive dynamics in MRD testing, women's health share gains, and the pace of the Japan launch.
Natera IncQ2 revenue beat estimates and EPS loss narrower than expected, with improved operating margin.