Back to top

Image: Bigstock

Pacific Biosciences (PACB) Loses 4.1% Post Reporting Q3 Loss

Read MoreHide Full Article

Pacific Biosciences of California, Inc. (PACB - Free Report) declined 4.1% on Nov 3 after the company reported earnings results.

The company reported third-quarter 2020 loss per share of 14 cents, in line with the Zacks Consensus Estimate. The company had reported loss of 19 cents in the year-ago quarter.

Revenues totaled $19.1 million, which missed the Zacks Consensus Estimate by 6.5% and also fell 12.8% from the year-ago quarter’s tally.

Segmental Analysis

Product Revenues: At this segment, revenues amounted to $15.7 million, down 15.1% from the prior-year quarter’s tally.

Service and Other Revenues: At this segment, revenues came in at $3.3 million, down 2.9% year over year.

Margins

Gross profit in the third quarter was $7.1 million, up 2.2% year over year. Gross margin was 37% of  total revenues, expanding 547 basis points.

Operating expenses totaled $31.2 million, down 10.8% year over year.

Operating loss came in at $24.2 million, narrower than the year-ago quarter’s loss of $28.1 million.

Cash Position

The company exited the third quarter with cash, cash equivalents and investments, excluding restricted cash, of $208.6 million compared with $120 million at the end of the second quarter.

Our Take

Pacific Biosciences ended the third quarter on a weak note. Nonetheless, the company continues to gain from its flagship Sequel system. The launch of the Sequel IIe System and collaboration with Asuragen during the quarter instill optimism.Gross margin expansion was noted in the quarter. Additionally, the company received termination fees from Illumina, which got reflected on the results.

However, Pacific Biosciences saw revenue decline in both its key operating segments.

Zacks Rank and Key Picks

Pacific Biosciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc  (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.

Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.

AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>

Published in