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Pacific Biosciences (PACB) Q4 Loss Narrower than Estimated
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Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing, reported loss of 21 cents per share in the fourth quarter of 2016, 2 cents narrower than the Zacks Consensus Estimate. However, the figure was much wider than the loss of 2 cents reported in the year-ago quarter.
Shares of Pacific Biosciences witnessed a 3.7% rally to close at $4.78 following the earnings release. Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 30%.
Revenues of $25.7 million surpassed the Zacks Consensus Estimate of $24 million but declined 27.8% on a year-over-year basis.
For the full year, Pacific Biosciences reported revenues of $90.7 million, down 2.2% on a year-over-year basis. Furthermore, the company reported loss of 83 cents per share, wider than the year-ago loss of 42 cents.
RevenueDetails
Product revenues rose 110.2% to almost $20.5 million. Service revenues grew 31.08% from the year-ago quarter to almost $3.8 million.
Instrument revenues surged more than 151.9% year over year to $13.1 million, driven by growing Sequel instrument shipments. For the full year, the company registered instrument revenues of $41 million, up 119% on a year-over-year basis.
Consumable revenues totaled $7.5 million, up 64% on a year-over-year basis. For the full year, consumable revenues increased 26% on a year-over-year basis to $23.6 million.
Of the major fourth-quarter highlights, Pacific Biosciences witnessed order bookings for 30 systems, up from 20 systems booked in the third quarter. Notably, these bookings include a 5-system order from GrandOmics.
Meanwhile, Pacific Biosciences got featured in over 2000 publications in the fourth quarter, courtesy of its smart sequencing platform.
Margin Details
Gross profit was $11.4 million (44% gross margin) as compared with $26.5 million (73% gross margin) in the year-ago quarter.
Research & development (R&D) expenses were $16.3 million, higher than $14.7 million reported in the year-ago quarter.
Pacific Biosciences of California, Inc. Price and EPS Surprise
Selling, general & administrative (SG&A) expenses totaled $13 million, marginally higher than $12.8 million in the year-ago quarter.
Balance Sheet
Cash and investments at the end of the fourth quarter was $72 million, compared with $82.3 million as of Dec 31, 2015.
Guidance
Management expects first-quarter revenues to be lower than the fourth quarter due to the decline in contractual revenues. However, revenues in the first quarter revenue are expected to grow significantly on a year-over-year basis.
For the full year, the company forecasts a 15% hike in operating expenses on a year-over-year basis. However, the company projects a wider loss for 2017 on a reported basis.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation(GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Dextera Surgical Inc. . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Dextera Surgical carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 175.5%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Dextera Surgical has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-month return of 51.04%.
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Pacific Biosciences (PACB) Q4 Loss Narrower than Estimated
Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing, reported loss of 21 cents per share in the fourth quarter of 2016, 2 cents narrower than the Zacks Consensus Estimate. However, the figure was much wider than the loss of 2 cents reported in the year-ago quarter.
Shares of Pacific Biosciences witnessed a 3.7% rally to close at $4.78 following the earnings release. Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 30%.
Revenues of $25.7 million surpassed the Zacks Consensus Estimate of $24 million but declined 27.8% on a year-over-year basis.
For the full year, Pacific Biosciences reported revenues of $90.7 million, down 2.2% on a year-over-year basis. Furthermore, the company reported loss of 83 cents per share, wider than the year-ago loss of 42 cents.
RevenueDetails
Product revenues rose 110.2% to almost $20.5 million. Service revenues grew 31.08% from the year-ago quarter to almost $3.8 million.
Instrument revenues surged more than 151.9% year over year to $13.1 million, driven by growing Sequel instrument shipments. For the full year, the company registered instrument revenues of $41 million, up 119% on a year-over-year basis.
Consumable revenues totaled $7.5 million, up 64% on a year-over-year basis. For the full year, consumable revenues increased 26% on a year-over-year basis to $23.6 million.
Of the major fourth-quarter highlights, Pacific Biosciences witnessed order bookings for 30 systems, up from 20 systems booked in the third quarter. Notably, these bookings include a 5-system order from GrandOmics.
Meanwhile, Pacific Biosciences got featured in over 2000 publications in the fourth quarter, courtesy of its smart sequencing platform.
Margin Details
Gross profit was $11.4 million (44% gross margin) as compared with $26.5 million (73% gross margin) in the year-ago quarter.
Research & development (R&D) expenses were $16.3 million, higher than $14.7 million reported in the year-ago quarter.
Pacific Biosciences of California, Inc. Price and EPS Surprise
Pacific Biosciences of California, Inc. Price and EPS Surprise | Pacific Biosciences of California, Inc. Quote
Selling, general & administrative (SG&A) expenses totaled $13 million, marginally higher than $12.8 million in the year-ago quarter.
Balance Sheet
Cash and investments at the end of the fourth quarter was $72 million, compared with $82.3 million as of Dec 31, 2015.
Guidance
Management expects first-quarter revenues to be lower than the fourth quarter due to the decline in contractual revenues. However, revenues in the first quarter revenue are expected to grow significantly on a year-over-year basis.
For the full year, the company forecasts a 15% hike in operating expenses on a year-over-year basis. However, the company projects a wider loss for 2017 on a reported basis.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation(GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Dextera Surgical Inc. . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Dextera Surgical carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 175.5%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Dextera Surgical has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-month return of 51.04%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>