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Pacific Biosciences (PACB) Up 41.2% 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 41.2% 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 catalysts.

Pacific Biosciences Posts Q3 Loss, Revenues Miss

Pacific Biosciences of California 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.
 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted 68.83% due to these changes.

VGM Scores

At this time, Pacific Biosciences has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Pacific Biosciences has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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