Nektar Therapeutics (NASDAQ:NKTR) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$24m beat estimates by a substantial 32% margin. Unfortunately, Nektar Therapeutics also reported a statutory loss of US$0.18 per share, which at least was smaller than the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Nektar Therapeutics

Taking into account the latest results, the six analysts covering Nektar Therapeutics provided consensus estimates of US$82.3m revenue in 2025, which would reflect a definite 12% decline over the past 12 months. Losses are expected to be contained, narrowing 18% from last year to US$0.75. Before this latest report, the consensus had been expecting revenues of US$71.1m and US$0.69 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts lifting next year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.

The average price target rose 310% to US$4.10, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nektar Therapeutics, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$1.30 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nektar Therapeutics' past performance and to peers in the same industry. We would also point out that the forecast 9.4% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 11% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 10% annually. So while a broad number of companies are forecast to grow, unfortunately Nektar Therapeutics is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Nektar Therapeutics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nektar Therapeutics going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nektar Therapeutics you should be aware of, and 1 of them is a bit unpleasant.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.