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Pacific Biosciences (PACB) Q1 Loss Wider than Estimated
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Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing technology (SMRT), reported a loss of 26 cents per share in the first quarter of 2017. The figure is 3 cents wider than the Zacks Consensus Estimate. In fact, the figure is also wider than the loss of 23 cents reported in the year-ago quarter.
Revenues of $24.91 million marginally missed the Zacks Consensus Estimate of $25 million but advanced 30.3% on a year-over-year basis.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Product and Services revenues rose 60% to $24.9 million on a year-over-year basis.
Gross margin in the first quarter was 35.9% of net revenues. This included a $1.3 million charge relating to RS II instruments. Excluding this charge, adjusted gross margin in the first quarter was 41.0% (of net revenues), lower than 49.7% recorded in the year-ago quarter.
Research & development (R&D) expenses totaled $16.9 million, a little higher than $16.4 million reported in the year-ago quarter.
Selling, general & administrative (SG&A) expenses totaled $15.3 million, significantly higher than $11.7 million a year ago.
Stock Price & Estimate Revision Trend
Shares of Pacific Biosciences rallied almost 3.4% to close at $5.18 following the earnings release.
In fact, the company posted an impressive performance on a year-to-date basis as well. Pacific Biosciences gained roughly 36%, higher than the Zacks categorized Medical instruments sub-industry’s addition of almost 9.3%. Moreover, the current level compares favorably with the S&P 500’s return of 8% over the same time frame. This, together with a long-term expected earnings growth rate of 30%, instills investor confidence in the stock.
However, the estimate revision for the stock has been unfavorable. The year has seen two estimates moving south over the last two months, compared to no movement in the opposite direction. As a result, the Zacks Consensus estimate for the full year is pegged at a loss of 86 cents per share.
Owing to the bearish analyst sentiments, Pacific Biosciences has a Zacks Rank #4 (Sell).
Balance Sheet
Cash and investments at the end of the first quarter was $56.1 million, compared with $72.0 million at the end of the fourth quarter of 2016.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 66.7%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 31.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Pacific Biosciences (PACB) Q1 Loss Wider than Estimated
Headquartered in Menlo Park, CA, Pacific Biosciences of California Inc. (PACB - Free Report) , a pioneer in the field of single molecule long resequencing technology (SMRT), reported a loss of 26 cents per share in the first quarter of 2017. The figure is 3 cents wider than the Zacks Consensus Estimate. In fact, the figure is also wider than the loss of 23 cents reported in the year-ago quarter.
Revenues of $24.91 million marginally missed the Zacks Consensus Estimate of $25 million but advanced 30.3% on a year-over-year basis.
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. Quote
Q1 Highlights
Product and Services revenues rose 60% to $24.9 million on a year-over-year basis.
Gross margin in the first quarter was 35.9% of net revenues. This included a $1.3 million charge relating to RS II instruments. Excluding this charge, adjusted gross margin in the first quarter was 41.0% (of net revenues), lower than 49.7% recorded in the year-ago quarter.
Research & development (R&D) expenses totaled $16.9 million, a little higher than $16.4 million reported in the year-ago quarter.
Selling, general & administrative (SG&A) expenses totaled $15.3 million, significantly higher than $11.7 million a year ago.
Stock Price & Estimate Revision Trend
Shares of Pacific Biosciences rallied almost 3.4% to close at $5.18 following the earnings release.
In fact, the company posted an impressive performance on a year-to-date basis as well. Pacific Biosciences gained roughly 36%, higher than the Zacks categorized Medical instruments sub-industry’s addition of almost 9.3%. Moreover, the current level compares favorably with the S&P 500’s return of 8% over the same time frame. This, together with a long-term expected earnings growth rate of 30%, instills investor confidence in the stock.
However, the estimate revision for the stock has been unfavorable. The year has seen two estimates moving south over the last two months, compared to no movement in the opposite direction. As a result, the Zacks Consensus estimate for the full year is pegged at a loss of 86 cents per share.
Owing to the bearish analyst sentiments, Pacific Biosciences has a Zacks Rank #4 (Sell).
Balance Sheet
Cash and investments at the end of the first quarter was $56.1 million, compared with $72.0 million at the end of the fourth quarter of 2016.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, all the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 66.7%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 31.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>