Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing, reported loss of 21 cents per share in the fourth quarter of 2016, 2 cents narrower than the Zacks Consensus Estimate. However, the figure was much wider than the loss of 2 cents reported in the year-ago quarter.
Shares of Pacific Biosciences witnessed a 3.7% rally to close at $4.78 following the earnings release. Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 30%.
Revenues of $25.7 million surpassed the Zacks Consensus Estimate of $24 million but declined 27.8% on a year-over-year basis.
For the full year, Pacific Biosciences reported revenues of $90.7 million, down 2.2% on a year-over-year basis. Furthermore, the company reported loss of 83 cents per share, wider than the year-ago loss of 42 cents.
RevenueDetails
Product revenues rose 110.2% to almost $20.5 million. Service revenues grew 31.08% from the year-ago quarter to almost $3.8 million.
Instrument revenues surged more than 151.9% year over year to $13.1 million, driven by growing Sequel instrument shipments. For the full year, the company registered instrument revenues of $41 million, up 119% on a year-over-year basis.
Consumable revenues totaled $7.5 million, up 64% on a year-over-year basis. For the full year, consumable revenues increased 26% on a year-over-year basis to $23.6 million.
Of the major fourth-quarter highlights, Pacific Biosciences witnessed order bookings for 30 systems, up from 20 systems booked in the third quarter. Notably, these bookings include a 5-system order from GrandOmics.
Meanwhile, Pacific Biosciences got featured in over 2000 publications in the fourth quarter, courtesy of its smart sequencing platform.
Margin Details
Gross profit was $11.4 million (44% gross margin) as compared with $26.5 million (73% gross margin) in the year-ago quarter.
Research & development (R&D) expenses were $16.3 million, higher than $14.7 million reported in the year-ago quarter.
Selling, general & administrative (SG&A) expenses totaled $13 million, marginally higher than $12.8 million in the year-ago quarter.
Balance Sheet
Cash and investments at the end of the fourth quarter was $72 million, compared with $82.3 million as of Dec 31, 2015.
Guidance
Management expects first-quarter revenues to be lower than the fourth quarter due to the decline in contractual revenues. However, revenues in the first quarter revenue are expected to grow significantly on a year-over-year basis.
For the full year, the company forecasts a 15% hike in operating expenses on a year-over-year basis. However, the company projects a wider loss for 2017 on a reported basis.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation(GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Dextera Surgical Inc. . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Dextera Surgical carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 175.5%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Dextera Surgical has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-month return of 51.04%.
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Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing, reported loss of 21 cents per share in the fourth quarter of 2016, 2 cents narrower than the Zacks Consensus Estimate. However, the figure was much wider than the loss of 2 cents reported in the year-ago quarter.
Shares of Pacific Biosciences witnessed a 3.7% rally to close at $4.78 following the earnings release. Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 30%.
Revenues of $25.7 million surpassed the Zacks Consensus Estimate of $24 million but declined 27.8% on a year-over-year basis.
For the full year, Pacific Biosciences reported revenues of $90.7 million, down 2.2% on a year-over-year basis. Furthermore, the company reported loss of 83 cents per share, wider than the year-ago loss of 42 cents.
RevenueDetails
Product revenues rose 110.2% to almost $20.5 million. Service revenues grew 31.08% from the year-ago quarter to almost $3.8 million.
Instrument revenues surged more than 151.9% year over year to $13.1 million, driven by growing Sequel instrument shipments. For the full year, the company registered instrument revenues of $41 million, up 119% on a year-over-year basis.
Consumable revenues totaled $7.5 million, up 64% on a year-over-year basis. For the full year, consumable revenues increased 26% on a year-over-year basis to $23.6 million.
Of the major fourth-quarter highlights, Pacific Biosciences witnessed order bookings for 30 systems, up from 20 systems booked in the third quarter. Notably, these bookings include a 5-system order from GrandOmics.
Meanwhile, Pacific Biosciences got featured in over 2000 publications in the fourth quarter, courtesy of its smart sequencing platform.
Margin Details
Gross profit was $11.4 million (44% gross margin) as compared with $26.5 million (73% gross margin) in the year-ago quarter.
Research & development (R&D) expenses were $16.3 million, higher than $14.7 million reported in the year-ago quarter.
Selling, general & administrative (SG&A) expenses totaled $13 million, marginally higher than $12.8 million in the year-ago quarter.
Balance Sheet
Cash and investments at the end of the fourth quarter was $72 million, compared with $82.3 million as of Dec 31, 2015.
Guidance
Management expects first-quarter revenues to be lower than the fourth quarter due to the decline in contractual revenues. However, revenues in the first quarter revenue are expected to grow significantly on a year-over-year basis.
For the full year, the company forecasts a 15% hike in operating expenses on a year-over-year basis. However, the company projects a wider loss for 2017 on a reported basis.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation(GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Dextera Surgical Inc. . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Dextera Surgical carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 175.5%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Dextera Surgical has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-month return of 51.04%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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