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PacBio's (PACB) Q4 Earnings Miss Estimates, Revenues Top
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Pacific Biosciences of California, Inc. (PACB - Free Report) , popularly known as PacBio, delivered adjusted loss per share of 30 cents in the fourth quarter of 2021, wider than the year-ago loss of 12 cents per share. The figure was also wider than the Zacks Consensus Estimate of a loss of 28 cents per share.
The company’s GAAP loss per share was 31 cents in the quarter against the year-ago earnings per share (“EPS”) of 37 cents.
Full-year adjusted loss was 93 cents per share, wider than the year-ago loss of 62 cents. The metric was also wider than the Zacks Consensus Estimate of a loss of 86 cents per share.
Revenues in Detail
PacBio registered revenues of $36 million in the fourth quarter, up 32.7% year over year. The figure marginally surpassed the Zacks Consensus Estimate by 0.1%.
The year-over-year uptick was partly driven by robust consumable and instrument sales.
Sequentially, the top line improved 3%.
Full-year revenues were $130.5 million, reflecting a 65.4% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.
Segmental Analysis
Product revenues amounted to $31.2 million, up 31.9% from the prior-year quarter.
PacBio placed 48 Sequel II/IIe systems during the fourth quarter of 2021 compared to 35 Sequel II systems placed in the year-ago quarter. This brings the total installed base of Sequel II/IIe systems to 374 as of Dec 31, 2021 compared with 203 as of Dec 31, 2020.
Instrument revenues for the fourth quarter of 2021 were $16.2 million, up 19.1% year over year.
Consumables revenues for the fourth quarter of 2021 were $15 million, up 50% from the prior-year quarter.
Service and Other Revenues came in at $4.9 million, up 38.2% year over year.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
In the quarter under review, PacBio’s adjusted gross profit rose 48.7% to $16.9 million. Adjusted gross margin expanded 504 basis points (bps) to 47.1%.
Sales, general and administrative expenses rose 107.9% to $37.3 million. Research and development expenses surged 144.3% year over year to $42.6 million. Adjusted total operating expenses of $79.9 million surged 125.8% year over year.
Adjusted total operating loss totaled $62.9 million in the reported quarter compared with the prior-year quarter’s adjusted total operating loss of $23.9 million.
Financial Position
PacBio exited full-year 2021 with cash, cash equivalents and investments (excluding short and long-term restricted cash) of $1.04 billion compared with $318.8 million at the end of 2020.
Guidance
PacBio has initiated its financial outlook for first quarter and full-year 2022.
The company expects its revenues for 2022 to be in the range of $160-$170 million, representing 23-30% growth from the comparable reported figure of 2021. The Zacks Consensus Estimate for the same is currently pegged at $182.3 million.
For the first quarter of 2022, PacBio expects revenues to be in the band of $31-$34 million, reflecting 12% growth on a year-over-year basis at the midpoint. The Zacks Consensus Estimate for the same is currently pegged at $38.5 million.
The company has witnessed lower utilization in January, primarily due to the pandemic-induced impacts and associated quarantine, thereby slowing lab productivity and, in some cases, preventing lab access. Along with the pandemic, the recent macro environment has resulted in some potential delays in capital purchases in the first quarter, particularly in EMEA.
Our Take
PacBio exited the fourth quarter of 2021 with wider-than-expected loss per share. The continued adjusted 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. Notably, 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 launch of the HiFiViral SARS-CoV-2 Kit in November 2021 and its planned launch of enhancements to the Sequel II/IIe platform in April 2022 are promising. The company’s slew of tie-ups over the past few months augurs well. 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 quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share, which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 6.8%. GSK’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 5%.
Henry Schein reported fourth-quarter 2021 adjusted EPS of $1.07, which surpassed the Zacks Consensus Estimate by 18.9%. Fourth-quarter revenues of $3.33 billion outpaced the Zacks Consensus Estimate by 4.7%. It currently has a Zacks Rank #2.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%.
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PacBio's (PACB) Q4 Earnings Miss Estimates, Revenues Top
Pacific Biosciences of California, Inc. (PACB - Free Report) , popularly known as PacBio, delivered adjusted loss per share of 30 cents in the fourth quarter of 2021, wider than the year-ago loss of 12 cents per share. The figure was also wider than the Zacks Consensus Estimate of a loss of 28 cents per share.
The company’s GAAP loss per share was 31 cents in the quarter against the year-ago earnings per share (“EPS”) of 37 cents.
Full-year adjusted loss was 93 cents per share, wider than the year-ago loss of 62 cents. The metric was also wider than the Zacks Consensus Estimate of a loss of 86 cents per share.
Revenues in Detail
PacBio registered revenues of $36 million in the fourth quarter, up 32.7% year over year. The figure marginally surpassed the Zacks Consensus Estimate by 0.1%.
The year-over-year uptick was partly driven by robust consumable and instrument sales.
Sequentially, the top line improved 3%.
Full-year revenues were $130.5 million, reflecting a 65.4% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.
Segmental Analysis
Product revenues amounted to $31.2 million, up 31.9% from the prior-year quarter.
PacBio placed 48 Sequel II/IIe systems during the fourth quarter of 2021 compared to 35 Sequel II systems placed in the year-ago quarter. This brings the total installed base of Sequel II/IIe systems to 374 as of Dec 31, 2021 compared with 203 as of Dec 31, 2020.
Instrument revenues for the fourth quarter of 2021 were $16.2 million, up 19.1% year over year.
Consumables revenues for the fourth quarter of 2021 were $15 million, up 50% from the prior-year quarter.
Service and Other Revenues came in at $4.9 million, up 38.2% 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 adjusted gross profit rose 48.7% to $16.9 million. Adjusted gross margin expanded 504 basis points (bps) to 47.1%.
Sales, general and administrative expenses rose 107.9% to $37.3 million. Research and development expenses surged 144.3% year over year to $42.6 million. Adjusted total operating expenses of $79.9 million surged 125.8% year over year.
Adjusted total operating loss totaled $62.9 million in the reported quarter compared with the prior-year quarter’s adjusted total operating loss of $23.9 million.
Financial Position
PacBio exited full-year 2021 with cash, cash equivalents and investments (excluding short and long-term restricted cash) of $1.04 billion compared with $318.8 million at the end of 2020.
Guidance
PacBio has initiated its financial outlook for first quarter and full-year 2022.
The company expects its revenues for 2022 to be in the range of $160-$170 million, representing 23-30% growth from the comparable reported figure of 2021. The Zacks Consensus Estimate for the same is currently pegged at $182.3 million.
For the first quarter of 2022, PacBio expects revenues to be in the band of $31-$34 million, reflecting 12% growth on a year-over-year basis at the midpoint. The Zacks Consensus Estimate for the same is currently pegged at $38.5 million.
The company has witnessed lower utilization in January, primarily due to the pandemic-induced impacts and associated quarantine, thereby slowing lab productivity and, in some cases, preventing lab access. Along with the pandemic, the recent macro environment has resulted in some potential delays in capital purchases in the first quarter, particularly in EMEA.
Our Take
PacBio exited the fourth quarter of 2021 with wider-than-expected loss per share. The continued adjusted 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. Notably, 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 launch of the HiFiViral SARS-CoV-2 Kit in November 2021 and its planned launch of enhancements to the Sequel II/IIe platform in April 2022 are promising. The company’s slew of tie-ups over the past few months augurs well. 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 quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share, which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 6.8%. GSK’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 5%.
Henry Schein reported fourth-quarter 2021 adjusted EPS of $1.07, which surpassed the Zacks Consensus Estimate by 18.9%. Fourth-quarter revenues of $3.33 billion outpaced the Zacks Consensus Estimate by 4.7%. It currently has a Zacks Rank #2.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%.