June 15, 2024

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Why Is Pacific Biosciences (PACB) Down 18.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Pacific Biosciences of California (PACB). Shares have lost about 18.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pacific Biosciences due for a breakout? 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 drivers.

Pacific Biosciences Reports Break-Even Earnings in Q4

Pacific Biosciences reported fourth-quarter 2019 break-even earnings per share versus the Zacks Consensus Estimate of a loss of 16 cents. The company had reported a loss of 21 cents in the year-ago quarter.

Revenues of the company totaled $27.93 million, which outpaced the Zacks Consensus Estimate by 9.8%. Revenues improved 43% from the year-ago quarter’s tally.

Segmental Analysis

Product Revenues: At this segment, revenues amounted to $24.6. million, up 49.4% from the prior-year quarter’s tally.

Service and Other Revenues: At this segment, revenues came in at $3.4 million, up 9.4% year over year.

Margins

Gross profit in the fourth quarter of 2019 was $12.9 million, up significantly from the year-ago $5.7 million. Gross margin was 46.3% of total revenues, improving significantly from the year-ago quarter’s 29.4%.

Research and development expenses increased 12.2% to $14.3 million in the quarter. Further, sales, general and administrative expenses dropped 17.6% to $16.6 million.

Operating expenses totaled $30.8 million, down 15.2% year over year.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Pacific Biosciences has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, 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 F. If you aren’t focused on one strategy, this score is the one you should be interested in.

Outlook

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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