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Pacific Biosciences (PACB) Posts Lower-Than-Expected Q2 Loss

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Zacks Equity Research
·3 min read
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Pacific Biosciences of California, Inc. (PACB) reported second-quarter 2020 loss per share of a 15 cents, narrower than the Zacks Consensus Estimate of a loss of 19 cents. The company had reported a loss per share of 16 cents in the year-ago quarter.

Revenues totaled $17.1 million, which beat the Zacks Consensus Estimate by 23.9% but fell 30.5% from the year-ago quarter’s tally.

Segmental Analysis

Product Revenues: At this segment, revenues amounted to $13.8 million, down 35.2% from the prior-year quarter’s tally.

Service and Other Revenues: At this segment, revenues came in at $3.3 million, down 1.5% year over year.

Margins

Gross profit in the second quarter was $6.6 million, down 31.2% year over year. Gross margin was 38.7% of total revenues, contracting 32 basis points.

Operating expenses totaled $30.1 million, down 11.3% year over year.

Operating loss came in at $23.5 million, narrower than the year-ago quarter’s loss of $24.4 million.

Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise

 

Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise

Pacific Biosciences of California, Inc. price-consensus-eps-surprise-chart | Pacific Biosciences of California, Inc. Quote

Guidance

Taking into account the continued uncertainty surrounding the COVID-19 pandemic and the extent and duration of the same, the company is unable to provide a reasonable estimate of the future impact on its operations and financial results. Hence, Pacific Biosciences has not issued any quarterly or full-year guidance.

Our Take

Pacific Biosciences ended the second quarter on a strong note. The company continues to gain from its flagship Sequel system. The company also saw a reduction in its operating expenses in the quarter under review. However, Pacific Biosciences saw revenue decline in both its key operating segments mainly due to the impact from the COVID-19 pandemic. Gross margin contraction was also noted in the quarter.

Zacks Rank and Key Picks

Pacific Biosciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While PerkinElmer carries a Zacks Rank #1 (Strong Buy), the other two sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

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