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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 , 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.

Pacific Biosciences of California Inc. - Earnings Surprise | FindTheBest

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 , Avinger, Inc. AVGR and Dextera Surgical Inc. DXTR . 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 of California, Inc. (PACB): Free Stock Analysis Report

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Glaukos Corporation (GKOS): Free Stock Analysis Report

Dextera Surgical Inc. (DXTR): Free Stock Analysis Report

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


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

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