Quantcast

Pacific Biosciences (PACB) Incurs Q4 Loss, Revenues Fall Y/Y


Shutterstock photo

Pacific Biosciences of California PACB incurred fourth-quarter 2018 adjusted loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 13 cents. The company had incurred a loss of 18 cents in the year-ago quarter. 

Revenues totaled $19.5 million, which missed the Zacks Consensus Estimate by 7.4% and declined 21.7% from the year-ago quarter's tally. The downturn can be attributed to lower instrument shipments and consumables sales.

The stock carries a Zacks Rank #3 (Hold). You can see  the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Segmental Analysis

Product Revenue: At this segment, revenues amounted to $16.4 million, down 24.8% from the prior-year quarter's tally.

Service and Other Revenue: At this segment, revenues came in at $3.1 million, down 0.1% year over year.

Pacific Biosciences of California, Inc. Price and Consensus

Pacific Biosciences of California, Inc. Price and Consensus | Pacific Biosciences of California, Inc. Quote

Margin Analysis

Gross profit in the fourth quarter of 2018 was $5.7 million, down 39.4% on a year-over-year basis. Gross margin was 29.4% of total revenues, significantly lower than 38.1% of net revenues as reported in the year-ago quarter.

Research and Development expenses increased 4.1% to $16.3 million in the quarter. Also, sales, general and administrative expenses rose 39.7% to $20.1 million.

Operating expenses totaled $36.4 million, up 21.1% year over year.

About the Illumina & Pacific Biosciences Merger

Illumina ILMN confirms 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. During the fourth quarter, Pacific Biosciences' operating expenses in connection with this deal summed approximately $8.2 million.

For investors' notice, the DNA sequencing market is highly competitive in nature owing to the presence of other established bigwigs like Thermo Fisher Scientific Inc. TMO . According to various analysts, QIAGEN N.V. QGEN currently offers one of the broadest portfolios of molecular technologies for human healthcare. Also, it provides services in pharmacogenomics.

Zacks' Best Stock-Picking Strategy

It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.

How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return. 

Free - See the Stocks It Turned Up for Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Thermo Fisher Scientific Inc. (TMO): Get Free Report

Pacific Biosciences of California, Inc. (PACB): Free Stock Analysis Report

QIAGEN N.V. (QGEN): Free Stock Analysis Report

Illumina, Inc. (ILMN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Business , Stocks
Referenced Symbols: TMO , PACB , QGEN , ILMN




More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?