NantKwest, Inc. :NK-US: Earnings Analysis: 2016 By the Numbers : March 21, 2017

NantKwest, Inc. reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of NantKwest, Inc. – Neurocrine Biosciences, Inc., Momenta Pharmaceuticals, Inc. and Seres Therapeutics Inc (NBIX-US, MNTA-US and MCRB-US) that have also reported for this period.

Highlights

  • Year-on-year change in operating cash flow of -52.51% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016 2015 2014 2013 N/A
Relevant Numbers (Annual)
Revenues 0.04 0.24 0.64 0.6 N/A
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -120.81 -236.88 -6.19 -1.86 N/A
Earnings Growth (YOY) 49 -3729.85 -232.71 N/A N/A
Net Margin -274565.91 -100371.19 -964.9 -309.83 N/A
EPS -1.47 -3.31 -0.75 -0.02 N/A
Return on Equity -37.21 -114.32 -22.28 N/A N/A
Return on Assets -35.31 -110.77 -19.66 -88.4 N/A

Access our Ratings and Scores for NantKwest, Inc.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

NK-US‘s change in operating cash flow of -52.51% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

Margins

Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for NantKwest, Inc.

Company Profile

NantKwest, Inc. develops and produces cancer treatment products based on its proprietary natural killer (NK) cell line, NK-92. It develops cell therapies for cancer, initially renal cell carcinoma and melanoma. The company was founded by Keller Gary N. and Klingemann Hans Georg on October 7, 2002 and is headquartered in Culver City, CA.

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