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PacBio's (PACB) Q2 Earnings Miss Estimates, Revenues Top
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Pacific Biosciences of California, Inc. (PACB - Free Report) , popularly known as PacBio, delivered loss per share of 21 cents in the second quarter of 2021, wider than the year-ago loss of 15 cents per share. The figure was also wider than the Zacks Consensus Estimate of loss of 20 cents per share.
Revenues in Detail
PacBio registered revenues of $30.6 million in the second quarter, up 79.2% year over year. The figure surpassed the Zacks Consensus Estimate by 0.5%.
The year-over-year uptick was partly driven by robust consumable sales.
Sequentially, the top line improved 6%.
Segmental Analysis
Product Revenues amounted to $26.5 million, up 92.9% from the prior-year quarter.
PacBio placed 38 Sequel II/IIe systems during the second quarter of 2021 compared to 23 Sequel II systems in the year-ago quarter. This brings the total installed base of Sequel II/IIe systems to 282 as of June 30, 2021 compared with 148 as of Jun 30, 2020.
Instrument revenues for the second quarter of 2021 were $14.3 million, up 60.7% year over year.
Consumables revenues for the second quarter of 2021 were $12.2 million, up 154.2% from the prior-year quarter.
Service and Other revenues came in at $4.1 million, up 22.8% year over year.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
In the quarter under review, PacBio’s gross profit rose 107.9% to $13.8 million. Gross margin expanded 621 basis points (bps) to 44.9%.
Selling, general & administrative expenses rose 92.1% to $29.1 million. Research and development expenses went up 48.3% year over year to $22.3 million. Total operating expenses of $51.3 million surged 70.3% year over year.
Total operating loss totaled $37.6 million in the reported quarter compared with the prior-year quarter’s total operating loss of $23.5 million.
Financial Position
PacBio exited the second quarter of 2021 with cash, cash equivalents and investments (excluding short and long-term restricted cash) of $1.14 billion compared with $1.16 billion at the end of the first quarter.
Our Take
PacBio exited the second quarter of 2021 with wider-than-expected loss per share. The continued loss per share incurred by the company is raising our apprehensions. The year-over-year operating loss for the company is another area of concern.
On a positive note, the company’s better-than-expected revenues in the reported quarter are encouraging. PacBio saw robust increases in both its Product, and Service and Other revenues during the quarter. The company also gained from strength in its Instrument and Consumables revenues during the reported quarter.
PacBio continues to gain from its flagship Sequel system. The company’s expanding base of Sequel II/IIe systems buoys our optimism. The company’s robust performance across geographies was another plus. PacBio’s slew of tie-ups and buyouts over the past few months is also encouraging. Gross margin expansion also bodes well for the stock.
Zacks Rank and Stocks to Consider
PacBio currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Chemed Corporation (CHE - Free Report) .
Encompass Health, carrying a Zacks Rank #2 (Buy), reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%. It currently sports a Zacks Rank #1.
Chemed reported second-quarter 2021 adjusted EPS of $4.60, surpassing the Zacks Consensus Estimate by 3.4%. Revenues of $532.3 million surpassed the Zacks Consensus Estimate by 0.8%. It currently carries a Zacks Rank #2.
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PacBio's (PACB) Q2 Earnings Miss Estimates, Revenues Top
Pacific Biosciences of California, Inc. (PACB - Free Report) , popularly known as PacBio, delivered loss per share of 21 cents in the second quarter of 2021, wider than the year-ago loss of 15 cents per share. The figure was also wider than the Zacks Consensus Estimate of loss of 20 cents per share.
Revenues in Detail
PacBio registered revenues of $30.6 million in the second quarter, up 79.2% year over year. The figure surpassed the Zacks Consensus Estimate by 0.5%.
The year-over-year uptick was partly driven by robust consumable sales.
Sequentially, the top line improved 6%.
Segmental Analysis
Product Revenues amounted to $26.5 million, up 92.9% from the prior-year quarter.
PacBio placed 38 Sequel II/IIe systems during the second quarter of 2021 compared to 23 Sequel II systems in the year-ago quarter. This brings the total installed base of Sequel II/IIe systems to 282 as of June 30, 2021 compared with 148 as of Jun 30, 2020.
Instrument revenues for the second quarter of 2021 were $14.3 million, up 60.7% year over year.
Consumables revenues for the second quarter of 2021 were $12.2 million, up 154.2% from the prior-year quarter.
Service and Other revenues came in at $4.1 million, up 22.8% year over year.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Pacific Biosciences of California, Inc. price-consensus-eps-surprise-chart | Pacific Biosciences of California, Inc. Quote
Margin Trend
In the quarter under review, PacBio’s gross profit rose 107.9% to $13.8 million. Gross margin expanded 621 basis points (bps) to 44.9%.
Selling, general & administrative expenses rose 92.1% to $29.1 million. Research and development expenses went up 48.3% year over year to $22.3 million. Total operating expenses of $51.3 million surged 70.3% year over year.
Total operating loss totaled $37.6 million in the reported quarter compared with the prior-year quarter’s total operating loss of $23.5 million.
Financial Position
PacBio exited the second quarter of 2021 with cash, cash equivalents and investments (excluding short and long-term restricted cash) of $1.14 billion compared with $1.16 billion at the end of the first quarter.
Our Take
PacBio exited the second quarter of 2021 with wider-than-expected loss per share. The continued loss per share incurred by the company is raising our apprehensions. The year-over-year operating loss for the company is another area of concern.
On a positive note, the company’s better-than-expected revenues in the reported quarter are encouraging. PacBio saw robust increases in both its Product, and Service and Other revenues during the quarter. The company also gained from strength in its Instrument and Consumables revenues during the reported quarter.
PacBio continues to gain from its flagship Sequel system. The company’s expanding base of Sequel II/IIe systems buoys our optimism. The company’s robust performance across geographies was another plus. PacBio’s slew of tie-ups and buyouts over the past few months is also encouraging. Gross margin expansion also bodes well for the stock.
Zacks Rank and Stocks to Consider
PacBio currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Chemed Corporation (CHE - Free Report) .
Encompass Health, carrying a Zacks Rank #2 (Buy), reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%. It currently sports a Zacks Rank #1.
Chemed reported second-quarter 2021 adjusted EPS of $4.60, surpassing the Zacks Consensus Estimate by 3.4%. Revenues of $532.3 million surpassed the Zacks Consensus Estimate by 0.8%. It currently carries a Zacks Rank #2.