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Pacific Biosciences (PACB) Up 82.4% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Pacific Biosciences of California (PACB - Free Report) . Shares have added about 82.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pacific Biosciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Pacific Biosciences Posts Lower-Than-Expected Q2 Loss

Pacific Biosciences of California, Inc. reported second-quarter 2020 loss per share of a 15 cents, narrower than the Zacks Consensus Estimate of a loss of 19 cents. The company had reported a loss per share of 16 cents in the year-ago quarter.

Revenues totaled $17.1 million, which beat the Zacks Consensus Estimate by 23.9% but fell 30.5% from the year-ago quarter’s tally.

Segmental Analysis

Product Revenues: At this segment, revenues amounted to $13.8 million, down 35.2% from the prior-year quarter’s tally.

Service and Other Revenues: At this segment, revenues came in at $3.3 million, down 1.5% year over year.

Margins

Gross profit in the second quarter was $6.6 million, down 31.2% year over year. Gross margin was 38.7% of total revenues, contracting 32 basis points.

Operating expenses totaled $30.1 million, down 11.3% year over year.

Operating loss came in at $23.5 million, narrower than the year-ago quarter’s

Guidance

Taking into account the continued uncertainty surrounding the COVID-19 pandemic and the extent and duration of the same, the company is unable to provide a reasonable estimate of the future impact on its operations and financial results. Hence, Pacific Biosciences has not issued any quarterly or full-year guidance.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 34.09% due to these changes.

VGM Scores

At this time, Pacific Biosciences has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Pacific Biosciences has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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