Natera Stock Plummets After Mixed Q3 Financials
Evette Mitkov 6 hours ago
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Natera shares are plunging Friday after mixed Q3 results, as a wider-than-expected loss offset revenue and guidance that topped estimates.
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.
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