Natera’s (NTRA) stock is up 14% after the genetic testing company reported second-quarter financial results that pleased Wall Street.
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The Austin, Texas-based company reported that its Q2 sales rose 32% year-over-year to $546.6 million. Additionally, Natera, which is not yet profitable, announced an earnings per share (EPS) loss of $0.74, which was worse than analysts’ consensus estimates that called for a loss of $0.62.
Still, in addition to the better-than-expected Q2 sales, Natera lifted its forward guidance. The company said it now expects full-year revenue of $2.06 billion at the midpoint, which is 4% above Wall Street’s expectations. Previously, Natera forecast 2025 revenue of $1.98 billion at the midpoint.
Rising Sales
Founded in 2003, Natera develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using a proprietary DNA technology. The company’s sales have been steadily rising, most recently registering 32% year-over-year growth in Q2.
“We delivered outstanding results in the second quarter, with record Signatera growth and continued strength across our women’s health and organ health product lines,” said Natera CEO Steve Chapman in the company’s earnings release. Prior to the Q2 results being made public, NTRA stock had been in a slump and is now up only 2% on the year.
Is NTRA Stock a Buy?
Natera’s stock has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on 11 Buy recommendations issued in the last three months. There are currently no Hold or Sell ratings on the stock. The average NTRA price target of $201.56 implies 43.85% upside from current levels. These ratings are likely to change after the company’s financial results.
