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A month has gone by since the last earnings report for Pacific Biosciences of California (PACB). Shares have lost about 30.6% 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 Q4 Earnings and Revenues Miss Estimates
Pacific Biosciences of California, Inc.’s reported fourth-quarter 2020 adjusted earnings per share of 37 cents. The company reported break-even results in the year-ago quarter. The Zacks Consensus Estimate was pegged at 43 cents per share.
For 2020, earnings per share came in at 17 cents, in line with the Zacks Consensus Estimate. The company reported a loss of 55 cents per share in the year-ago period.
For the fourth quarter, revenues totaled $27.1 million, which missed the Zacks Consensus Estimate by a marginal 0.4% and also fell 2.9% from the year-ago quarter’s tally.
For 2020, revenues logged $78.9 million in line with the Zacks Consensus Estimate. Meanwhile, the topline dropped 13.2% year over year.
Product Revenues amounted to $23.6 million, down 4.1% from the prior-year quarter.
Service and Other Revenues came in at $3.5 million, up 2.9% year over year.
Gross profit in the fourth quarter was $11.4 million, down 11.8% year over year. Gross margin was 42% of total revenues, contracting 429 basis points.
Operating expenses totaled $35.4 million, up 14.7% year over year.
Operating loss came in at $23.9 million, wider than the year-ago quarter’s loss of $17.9 million.
The company exited the fourth quarter with cash, cash equivalents and investments excluding restricted cash of $318.8 million compared with $49.1 million at the end of the year-ago period.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -249.21% due to these changes.
At this time, Pacific Biosciences has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Pacific Biosciences has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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