Natera (NASDAQ: NTRA) stock surged 5.36% in pre-market trading on Friday, following the company's impressive fourth-quarter 2024 earnings report and bullish 2025 guidance.
The key highlights driving Natera's stock rally include:
- Record revenue of $476 million in Q4 2024, reflecting a 53% year-over-year increase, driven by strong growth in their Signatera test volumes and improved average selling prices (ASPs).
- Gross margins expanded significantly to 63% in Q4 2024, up from 51% in the prior year, showcasing improved cost management and pricing strategies.
- Positive cash flow generation of $46 million in Q4 2024, contributing to a total of $86 million for the year, demonstrating Natera's financial strength.
- Robust 2025 revenue guidance ranging from $1.87 billion to $1.95 billion, reflecting continued momentum and growth potential.
- Expanded Medicare coverage for Signatera in non-small cell lung cancer, opening new market opportunities and potential revenue streams.
Additionally, several analysts have raised their price targets and reiterated Buy ratings on Natera's stock, citing the company's strong Q4 performance, promising growth prospects, and strategic initiatives. These positive analyst views have further fueled the stock's pre-market rally.