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Pacific Biosciences (PACB) Incurs Q4 Loss, Revenues Fall Y/Y

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Pacific Biosciences of California (PACB - Free Report) incurred fourth-quarter 2018 adjusted loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 13 cents. The company had incurred a loss of 18 cents in the year-ago quarter. 

Revenues totaled $19.5 million, which missed the Zacks Consensus Estimate by 7.4% and declined 21.7% from the year-ago quarter’s tally. The downturn can be attributed to lower instrument shipments and consumables sales.

The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Segmental Analysis

Product Revenue: At this segment, revenues amounted to $16.4 million, down 24.8% from the prior-year quarter’s tally.

Service and Other Revenue: At this segment, revenues came in at $3.1 million, down 0.1% year over year.

Pacific Biosciences of California, Inc. Price and Consensus

 

Margin Analysis

Gross profit in the fourth quarter of 2018 was $5.7 million, down 39.4% on a year-over-year basis. Gross margin was 29.4% of total revenues, significantly lower than 38.1% of net revenues as reported in the year-ago quarter.

Research and Development expenses increased 4.1% to $16.3 million in the quarter. Also, sales, general and administrative expenses rose 39.7% to $20.1 million.

Operating expenses totaled $36.4 million, up 21.1% year over year.

About the Illumina & Pacific Biosciences Merger

Illumina (ILMN - Free Report) confirms its merger with Pacific Biosciences. Per management, the total value of the deal is approximately $1.2 billion. The agreement is expected to close by mid-2019. During the fourth quarter, Pacific Biosciences’ operating expenses in connection with this deal summed approximately $8.2 million.

For investors’ notice, the DNA sequencing market is highly competitive in nature owing to the presence of other established bigwigs like Thermo Fisher Scientific Inc. (TMO - Free Report) . According to various analysts, QIAGEN N.V. (QGEN - Free Report) currently offers one of the broadest portfolios of molecular technologies for human healthcare. Also, it provides services in pharmacogenomics.

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