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Pacific Biosciences (PACB) Incurs Loss in Q1, Revenues Fall

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Pacific Biosciences of California (PACB - Free Report) incurred first-quarter 2019 adjusted loss of 20 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. The company had incurred a loss of 20 cents in the year-ago quarter.
 
Revenues totaled $16.4 million, which missed the Zacks Consensus Estimate of $22 million and declined 15.2% from the year-ago quarter’s tally.
 
The stock carries a Zacks Rank #4 (Sell).
Segmental Analysis
 
Product Revenue: At this segment, revenues amounted to $16.4 million, down 17.4% from the prior-year quarter’s tally.
 
Service and Other Revenue: At this segment, revenues came in at $3 million, down 3.6% year over year.
 
Margin Analysis
 
Gross profit in the first quarter of 2019 was $5.1 million, down 29.9% on a year-over-year basis. Gross margin was 31.2% of total revenues, significantly lower than 37.7% of net revenues as reported in the year-ago quarter.
 
Research and Development expenses fell 5.1% to $15.5 million in the quarter. Also, sales, general and administrative expenses rose 32.4% to $19.8 million.
 
Operating expenses totaled $35.3 million, up 12.8% year over year.
 
About the Illumina & Pacific Biosciences Merger
 
Illumina (ILMN - Free Report) has confirmed its merger with Pacific Biosciences. Per management, the total value of the deal is approximately $1.2 billion. The agreement is expected to close by mid-2019.
 
Earnings of MedTech Majors at a Glance
 
Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (SYK - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the consensus estimate.
 
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Revenues of $218.4 million outpaced the consensus estimate of $213 million.
 
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