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

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


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.

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